Residents along the route had argued that the scheme was expensive, would not significantly cut traffic and would cause major damage to buildings and the enviromment, particularly on the A660 Otley Road through Headingley.
Bill McKinnon, chairman of the Friends of Woodhouse Moor group, said: “I’m very pleased that the government has decided that Woodhouse Moor is to be spared having trolleybuses running across it.
“I hope that any future proposals are based on an understanding that our open spaces are scarce resources which require protection. We should be very suspicious of schemes like the trolleybus which claim it’s necessary to destroy the environment in order to save it.”
Dawn Carey Jones, a campaigner from the Hyde Park area of the city, said: “Until they have enough money to do something successful along the A660 that wouldn’t destroy the environment and heritage we hope they leave it alone.
“Working with people all along the route, north and south Leeds, and across the city to fight this scheme has been amazing but I hope we don’t have to do it again any time soon.”
Leeds North West MP Greg Mulholland, whose constituency included part of the proposed route, said: “This is exactly the outcome that I and others have been calling for, and I am delighted that we can now come together as a city and region to discuss a properly integrated, modern transport system.”
Mr Mulholland called for a “summit” to be held to look at alternative proposals to meet the city’s transport needs.