Nigel Huddleston, the MP for Droitwich and Evesham, said: “The logic behind having this one central development was to take pressure off the villages and towns in my constituency.
“Many villages immediately surrounding the proposed site already have issues with water, sewerage, transport and access to healthcare and education.”
The BBC understands the first set of planning applications for Wychavon Town are set to be decided on before the end of this year.
The development will still get specialist support from Homes England, the government’s regeneration agency, which aims to speed up the delivery of new housing across the country.
But the decision to remove it from the new towns’ list means developers face forking out more money on the infrastructure, something residents have raised concerns about.
The ministry of housing, communities and local government said the five sites removed from the list were still deemed to be “credible development opportunities”, and may get future government assistance.
The final list is being billed as the most ambitious housebuilding project in England for half a century, with the seven new towns set to include between 15,000 and 40,000 homes each.