Brighton chief executive Martin Perry insists the latest blow to the club's attempts to build a new stadium will not affect the timescale of the project.
The Seagulls were informed late on Thursday afternoon that the Office of the Deputy Prime Minister has been forced to quash October's 'Yes' verdict due to a factual error in the approval letter for the development plans.
A spokesman for Deputy Prime Minister John Prescott said: "The planning permission will be rescinded and the Secretary of State will make a new decision.
"This does not mean the original decision was wrong. We have conceded because of a technical error, not because of the substance of the decision."
The new development comes after Lewes County Council highlighted the error in their evidence to the High Court, where they are seeking a judicial review of the planning permission.
The council's opposition has already forced Brighton to put back the planned opening of the proposed 22,000-seater arena at Falmer until 2009.
And Perry said: "The club is pleased that the treasury solicitor has decided to take this route.
"Although it will give a pyrrhic victory to Lewes, this is the most sensible and quickest route out of the mess, Lewes have created, because the club will not have to wait for a court hearing, or the time it takes for the judgement to be made.
"It is only a minor technicality and was not a determining factor in the decision."