The brainchild behind shrinking parking spaces in CMK has pulled out from the plan.
Councillor Matt Clifton has withdrawn his decision to create 235 additional parking bays by changing the widths of 5,000 other spaces.
It follows news this week that the £300,000 proposal had been called-in by opposition councillors and campaign groups.
Mr Clifton, Labour cabinet member for transport, said: “There are legitimate issues raised by the Liberal Democrats and others over the size of the bays, their cost, and the impact of the lining work on resident.
“I am grateful to my Liberal Democrat colleagues for their considered conversations with me, and having listened to their reasoned arguments I have decided not to proceed with the scheme.”
Pressure had built on MK Council to reverse its decision following public outcry to re-draw more than 5,000 spaces in CMK to below the industry’s recommended minimum width of 2.4m.
The plans, revealed by the Citizen, prompted criticism from shoppers and motorists.
A petition was launched by a member of the public on the change.org website and was signed by more than 1,600 people.
Mr Clifton added: “We are always willing to listen and take on board constructive criticism. Over the past year we’ve been working hard to provide additional parking for employees in the city centre.
“It is not easy but so far we’ve managed to bring 800 extra standard charge bays into use for employees.”
He continued: “We are limited in the short term options we have at our disposal, for example you cannot build a multi-storey car-park overnight, and other ideas, such as decking, also have their costs and detractors.”
“However, in the medium term, we will enable thousands of more spaces and we are committed to ensuring the investment in providing that extra capacity.
“The proposal was a pragmatic idea to help meet a short-term need, but it will not return unless we are able to demonstrate that it has support.”