The 37-storey apartment building - named Aurora - was planned as a landmark structure for the city and to act as a catalyst for further regeneration.
The developer has insisted planners "did not pay due regard to the character of the site and the surrounding area" on Great Victoria Street.
Spokesman, Mervyn McAlister said the decision to halt the scheme "simply beggars belief".
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He told the BBC the planning authority's move would send out a "hugely negative" message to investors and other developers.
"We have been working with the Divisional Planning Office for almost three years on this project and this opinion simply beggars belief.
"The proposal complies with every statutory requirement but it seems the planning service has taken cold feet due to the height of the building," said Mr McAlister.
"The fact is that the Aurora Building at 109 metres is only four and a half metres taller than the Bedford Square building which was granted planning permission a few hundred yards away," he said.
The developer has called on the Stormont Executive to step in and push the project forward.
Planners will present their findings to Belfast City Council this evening.
The Department of Environment has deemed it inappropriate to discuss the situation as it is still considered a "live application".
(PR)(BMcC)
