The decision by Newham Council in east London, which responsible for the district, came as the group known as 'Tablighi Jamaat' failed to submit a master plan for the site by the required deadline in Jan 2010.
The council has asked the Islamic group to leave the land on Thursday, Jan 21.
The group was planning on building a 'super-mosque' next to the site for the 2012 Olympic Games, on a 7.3-hectar site in Stratford, east London.
If built the mosque would have accommodated 12,000 worshippers and would have been the biggest of its kind in Europe.
However, the plan turned controversial with massive opposition from the local community and Christian religious groups.