A bid to use 31 shipping containers to create a £1.6m hub for a community arts, office and conference space has been scrapped.
WorkShop Group will still build the centre on the 60-space site off Chester Walk but instead will use modular units.
Council documents stated the containers could not provide "flexible, open plan spaces" needed for modern working.
The Workshop Group is now resubmitting its application due to the changes.
The document also said there are fewer single trip containers entering the country, which means if pursued "the use of shipping containers we would essentially be fabricating them in the UK only to dismantle them on site at a later date".
The centre will be home to a performance arena, community and education spaces as well as a café and restaurant the Local Democracy Reporting Service said.
The scheme aims to plug a deficit in flexible and affordable office space for start-ups and small businesses in the creative sectors in Cheltenham.
"The demands of modern working require more flexible, open plan spaces that containers are simply unable able to provide due to their 8 ft (2.4 m) standardised widths and 39 ft (12 m) elongated profiles," the document stated.
Instead the developers have opted for modular units which could "substantially improve the internal configuration and rationalisation of space".