The company behind plans for a massive London entertainment venue has withdrawn its planning application weeks amid a tussle between Sadiq Khan and Michael Gove, Sky News learns.

The American company behind plans for a London entertainment venue that was blocked by Sadiq Khan last month has formally withdrawn its planning application, complaining that it had become “a political football”.

Sky News has learnt that Madison Square Garden (MSG), Sphere Entertainment’s parent company, has written to British officials to notify them that it is pulling out of a process overseen by the Planning Inspectorate.

The notification comes less than two months after the London mayor blocked plans for a 300-foot tall sphere in Stratford, east London, which would have been capable of staging events in front of 23,000 people.

Mr Khan overruled the proposed venue, citing unacceptable levels of noise and light pollution.

However, the project appeared to have been granted a glimmer of hope when Michael Gove, the housing secretary, said he would use his powers to “call in” the scheme, effectively triggering a review of the Mayor’s decision.

One public sector official said that Sphere Entertainment had concluded that it would not continue through further stages of a process in which the company believed it was being used as “a political football between rival political parties”.

The Sphere in London was highly divisive, with local campaigners arguing that it would blight residents’ lives, while others argued that rejecting it sent an unwelcome message about London’s receptiveness to foreign direct investment.

A similar venue in Las Vegas, which opened last year, has attracted hundreds of thousands of visitors and attracted artists including Kylie Minogue and Nile Rodgers.

MSG’s abandonment of its planning application is, in reality, unsurprising after Mr Khan rejected the scheme, with executives saying they would take their plans to “more forward-thinking global cities”.

It is now expected to pursue a sale of the land on the east London site.

A Sphere Entertainment spokesperson said: “We have informed Mr. Gove that our decision not to move forward with our plans for Sphere in London stands, and we will not be participating in the call-in process.

“We would like to thank all of those who worked earnestly to bring this project to London. We are committed to continuing to work collaboratively with forward-thinking cities around the world who are serious about bringing this next-generation entertainment experience to their communities.”