Planning officers have recommened councillors lodge an official objection to the controversial proposal to build almost 2,000 new homes outside Far Bletchley.
The development, formerly known as Salden Chase, fails to meet the statutory test for planning obligations, say council officers.
MK Council was asked for its opinion by neighbouring Aylesbury Vale authority because the land is under the latter’s domain.
The application is from a consortium of major developers who call themselves South West Milton Keynes.
In a report published this week for city planning councillors, MK officers said the application failed to take into account the level of services and facilities required to meet the needs of such a large influx of extra residents.
They also said it failed to make a “proportionate” contribution towards increasing the existing facilities in MK to meet the extra demand.
It also fails to mitigate the impact it would have on city infrastructure, said the officers.
Town and parish councils within the area have also objected, saying buses, schools, health facilities and roads could not cope.
The site for the proposed urban extension is on land south of the A421, west of Far Bletchley and north of the East West rail link.