A £4.5 million project to provide Manningham with a new pool and sports hall has been rejected by the English Sports Council's lottery awards panel.
The devastating blow was immediately condemned by councillors who say the people of Manningham will be very disappointed.
The project aimed to provide a new pool, learner pool, upgraded sports hall facilities, activity rooms and changing facilities.
Bradford Council's leisure services chairman Councillor Barry Thorne said: "Bradford has received very little in Sports Lottery funding to date.
"I am surprised and dismayed at this decision because we felt a strong case for the project has been submitted."
He said it was clear the Sports Lottery Panel has not understood or considered the specific and cultural needs of the community.
"It is unbelievable that the Sports Lottery Panel has refused support because the Government has already approved some initial funding towards the project as part of a package of capital schemes for the Manningham area."
The project was granted £200,000 from the Government's challenge funding to put the bid together and talks are being held to decide whether the Council should re-submit the application.
Councillor Mohammed Ajeeb said: "It's very bad news for Manningham.
"We were more than hopeful it would go through. It is going to disappoint the residents of Manningham.
"We were expecting the money to be forthcoming."
Nafees Nazir, who has worked with many young people in Manningham, said: "Still there is nothing for the young people in the area other than the Grosvenor Centre in Lumb Lane which is very under-resourced.
"It's so unfair that since 1985 the evidence has been there and yet young people in the area are still not getting the facilities."
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