The city determined the proposed location next to a major basketball arena was “inappropriate”.
Former football player David Beckham has travelled to Miami frequently in recent months to launch a Major League Soccer (MLS) club.
David Beckham’s business group, Beckham Miami United, has said it will continue to pursue alternative locations.
The group is required to finalize a stadium deal before it can win approval from MLS, the US professional soccer league, to open a club.
An earlier proposal for a waterfront stadium site also experienced local resistance from cruise lines.
Scrutiny of the deal rose sharply after the city provided $500 million in public funding to build a new stadium for the Miami Marlins baseball team.
Public anger over that deal is said to have contributed to a 2011 vote ousting the former Miami-Dade County mayor from office.
Beckham Miami United has agreed to finance a $250 million stadium – expected to seat an estimated 20,000 spectators – and pay rent on the publicly owned land.
David Beckham’s partners in the endeavor include British entrepreneur Simon Fuller and mobile phone services billionaire Marcelo Claure.
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