The scheme for a station at Saughall Massie was rejected at Wirral Council's planning meeting by seven votes to six.
The site would have covered the West Kirby and Upton areas after stations there were earmarked for closure.
Conservative councillor Chris Blakeley, who campaigned against the proposal, said Thursday's decision was "a victory for common sense and people power".
The planning committee went against a recommendation from planning officers and rejected the application by Merseyside Fire and Rescue Service (MFRS) at the meeting at Wallasey Town Hall.
Merseyside Fire and Rescue Authority said it was "very disappointed" and will now consider an appeal to the secretary of state for the station in Saughall Massie Road.
Chairman of the authority, Dave Hanratty, said: "We are extremely concerned that this decision results in an avoidable increase in response times in the Hoylake and West Kirby areas.
"We believe that lives will be put at risk as a result."
Mr Blakeley, who represents the area where the building would have been built, said the proposal would have resulted "in harm to the visual amenities of the green belt... and the amenities of neighbouring residents and the wider locality".
In June 2015, MFRS said it must close stations due to budget cuts and the site would have the least impact on emergency response times.
A plan to build a new fire station on green belt land in Wirral has been rejected by councillors.