The project was awarded to Balfour Beatty last year under a Early Contractor Involvement (ECI) deal.

Plans involved constructing a 3,600 space lorry park to ease pressure on the M20 during “Operation Stack” where lorries are queued on the motorway.

The Government has now decided not to defend a judicial review into the scheme following complaints from local residents.

Highways England will now develop new plans for a permanent solution, including a lorry park, with consultation set to take place next year, ahead of a planning application in 2019.

An interim plan is also being developed by Highways England to allow motorists to carry on using the M20 when Operation Stack is implemented.

This could see a dual carriageway created on the M20 by using moveable or steel barriers to safely store lorries in the centre of the motorway.

This solution should be in place by March 2019 and more details will be confirmed early next year.

Roads Minister Jesse Norman said: “We know how seriously the lives of Kent residents and the prospects of businesses were affected when Operation Stack was implemented in 2015 and we remain fully committed to a permanent solution.

“However, we need to go through the proper procedures to ensure our plans, which include a lorry park, best fit the needs of Kent and the freight industry.

“In the meantime we are developing an interim measure to keep the M20 open to traffic in both directions if Operation Stack is implemented – ensuring disruption is kept to a minimum.”