Plans to build 175 homes on a golf course, could still be rejected at a planning appeal.
Persimmon Homes originally had its application to build the development on land at Oakdale Golf Club turned down by councillors back in March this year.
But the house builder has appealed and members sitting on the council’s planning committee last month decided not to contest.
The original application was rejected by councillors on the grounds the local authority was consulting on a new Local Development Plan – which acts as a guide on where developments can take place.
However, the draft plan was withdrawn following vocal opposition from residents.
As a result, Persimmon is arguing, the original reason for turning down the application no longer exists.
Despite originally reporting the development looked set to go ahead, Caerphilly Observer can now confirm the Planning Inspectorate Wales will have the final decision.
A spokeswoman said: “Local planning authorities are afforded the opportunity to make their case usually through an appeal statement and the Planning Inspectorate will make a decision based on the evidence.
“Just because the local authority decides not to contest an appeal does not mean it will automatically be consented because there may be sound reasons why the appeal should be dismissed.”