After listening to the case, the committee voted to take no further action.
Mayor Marvin Rees said: "I am delighted that the Call In committee has voted to take no further action. I am confident that we have made the right decision about what to do on Temple Island and it's now time to move on. If we hold our nerve, we could have an arena, a conference centre and thousands of new homes and jobs for the people of Bristol."
The proposed alternative scheme for the Temple Island site could include a bespoke conference centre and a four or five star hotel, commercial spaces with supporting retail and residential homes for city centre living, and affordable homes. Developed plans will come back to cabinet at a later date.