The City of Sydney has voted against allowing McDonald's to open up in Newtown after residents and police opposed the plan, saying it would ruin the neighbourhood.

McDonald's Australia's proposal to build a $1.7 million restaurant operating 24 hours a day and seven days a week at 212-214 King Street attracted strong opposition.

More than 1000 residents signed an online petition after the development application was lodged on July 8, with chicken shop owners fearing they would not be able to keep up with the competition and may have to close down.

There are already six chicken shops, including KFC and El Jannah, within a 170-metre radius of the proposed site. 

The local planning panel considered the proposal during a council meeting this evening, where residents voiced their dist

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