An appeal by Linby Homes to build on Berry Hill Park has been dismissed by the planning inspectorate.
Linby Homes hoped to build eight new detached homes on land adjacent to 150 Berry Hill Lane.
The developer lodged an appeal in January after the original application was declined by Mansfield District Council.
The planning department for Mansfield District Council refused the original plans in October 2018.
The decision to dismiss the appeal was made after a site visit by the planning inspectorate on March 13.
In their appeal, Linby Homes cited the need to undertake work to the park, including replacing the children's playground and demolish two 'redundant' buildings.
A report provided after the site visit by Inspector by E Brownless said: "The main issue is the effect of the proposal upon public open space.
"The appellant has cited the need to remove and replace the existing children’s playground, provide a flood prevention system to the pond, test and upgrade the electrics to the running track, changing rooms and gym, demolish two redundant buildings, improve the parks boundaries, improve the car park particularly for disabled patrons and provide wider gates.
"However, little information has been provided to me regarding the nature of the works required, the likely costs involved, the value of the capital receipt from the disposal of the land and whether this sum would satisfy in full or in part those matters listed above. Accordingly, I find that there is no substantive evidence before me that there would be an enhancement of the facility for recreational use."
Previous plans for the site between Coal Industry Social Welfare Organisation (CISWO) and Berry Hill Park Care Home were refused in April 2018.
The public rallied to save the park after the trustees said they would have to close it due to lack of finances.
A protest in November to keep the park open for public use attracted hundreds of residents.
The council then agreed to carry out maintenance of the park so that it can be enjoyed by the public, whilst options are considered to secure its long-term future.
Claire Dob, who has lead the campaign to keep the park open, said the dismissal was a victory for the community.
Claire said: "As a resident, I am very pleased the park is to be kept as an open space for all to enjoy.
"I started the protests, the community got involved and Mansfield District Council listened - this is a victory for the community.
"This is a great testament to people power, as the public and Friends of berry Hill Park group were committed to fight against any inappropriate development on this valued open space.
"I hope Mansfield District Council take over the iconic park, so it will be there for many future generations to enjoy."
The planning inspectorate is responsible for decisions on land use planning-related issues.