The decision to site the Lottery-funded project elsewhere has been praised by Goring Residents' Association, but condemned by supporters of the original idea to site it at the south-east corner of the Greensward.
Council leader Keith Mercer said the main reason for the decision was the "unsuitability" of the proposed site in meeting the population's needs, with 180 degrees of the surrounding area being out to sea.
"It was felt that there would be more potential in looking at other sites in south Goring, which would be in the population centres."
While a slim majority of responders to the council's public consultation exercise favoured the Greensward option, local petitions showed a near 10-1 majority against this idea.
Kathryn Walker, vice-chairman of Goring Residents' Association, said: "We are just delighted that the council has recognised the Greensward is a precious asset and that the playground should be sited on an alternative site, and we hope they will find a suitable one.
"Our aim is not to stop a playground being built, but to protect the Greensward."
But Ian Ross, Labour parliamentary candidate for Worthing West, said: "I am extremely disappointed at this outcome.
"It is a great pity that those who shout the loudest have been successful in preventing a new playground being delivered for local children in Goring.
"The council's decision will now put the plans back further and it is a shame children in Goring will have to wait even longer before having a decent play facility they deserve.
"I hope Worthing Borough Council will work hard to ensure an alternative site is found for the playground before the summer arrives."
Council officers will now investigate alternative playground sites in south Goring. They are:
Mersham Gardens; the dinghy park; West Parade (immediately west of Roberts Marine); Goring Hall, close to Goring rec; Fernhurst recreation ground; Goring recreation ground (already a playground with expansion limitations on this site, and which is already earmarked for improvement in 2010/11).
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