The application, which was given outline approval in March, was to replace the existing leisure centre with a new secondary and primary school, alongside a new leisure centre.
After concerns were raised by residents, the four county councillors for Ponteland asked officers to re-examine all possible options.
Residents had objected to the scale of development, and questioned the decision to build on green belt land.
They also argued the schools proposal would increase flood risks for nearby residents.
Now the county council has withdrawn the application in order to make design changes.
The council said a new detailed planning application will now be developed and will be brought forward as soon as possible.
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