The revised development plans would have seen The Tooting Constitutional Club at 111-113 Tooting High Street replaced with 39 new homes, offices and community space in a new building up to five storeys high.
Councillors refused a previous scheme in May this year which was the subject of an appeal, which was denied.
The chairman of the committee Cllr Sarah McDermott said: “Unfortunately the developer has not done enough to overcome the many valid local objections to this scheme.
“Although the revised plans were for a smaller replacement building with fewer flats the proposed scheme was still too big, too unneighbourly and would have had an adverse effect on the nearby listed building in the high street.”
Earlier this year the council named the constitutional club as an Asset of Community Value.