Sheikh Mohammed Bin Rashid al-Maktoum owns Inverinate Estate and its existing properties in Kyle of Lochalsh.
But the plans were opposed by some local residents because the building would overshadow a nearby bungalow.
Objectors argued there was plenty of land elsewhere on the estate, which already has a large country house and a 14-bedroom holiday home serviced by three helicopter pads, for the development.
Two other new properties are being built on the estate.
Highland Council said it was not aware of the reasons why the application had been withdrawn.
A spokeswoman said: “The planning authority, however, had expressed concerns over the proposal regarding its size and encouraged the applicant to consider an amended proposal for a smaller development.”
The estate had previously withdrawn an application for the new lodge, before resubmitting the plans with the site moved further away from the bungalow, which has been Roddy Macleod’s family home for more than 30 years.
Loch Duich Community Council was among the objectors to the resubmitted plans.
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