LAURIMAR estate could get a tavern without pokies after Whittlesea Council approved a development plan amendment for the site.

Following discussions with the council, Tattersalls have withdrawn the Supreme Court appeal which sought to install 40 poker machines at the proposed tavern.

The amendment means the site could be used for a three-storey building with a combination of offices, residential dwellings and a ground-floor food and drink premises.

Councillors and residents have welcomed the idea of a new venue without pokies.

Tattersalls spokesman Michael Mangos said the company would now consider the implications of the development plan amendment.

"Now that the land can be used for mixed use Tattersalls will be instructing its solicitors to withdraw its Supreme Court appeal," Mr Mangos said.

Councillor Sam Alessi said the decision was a win for the community.

"It's a win from the pokies point of view but also a win for those who don't like pokies but want somewhere to eat...so the community gets the best of all worlds," he said.

Councillor Stevan Kozmevski said the community would be "over the moon".

Doreen resident and anti-pokies campaigner Glynis Dickens said the amendment was a good compromise.

"We've always wanted a tavern, we just didn't want the pokies," she said.

The decision puts an end to the community battle to keep pokies out of Laurimar.

The Victorian Commission for Gambling Regulation granted a licence for 40 gaming machines for the proposed Laurimar Tavern in March 2010.

Whittlesea Council successfully challenged the VCGR decision at the Victorian Civil and Administrative Tribunal in February this year but the developer Tattersalls appealed to the Supreme Court.

The new plans for the site will need to go before Whittlesea Council for planning approval.