The company planning to build 70 timber chalets in a beauty spot near Corby has revised its proposals.
Forest Holidays, a joint venture with the Forestry Commission, wanted to build the holiday cabins at Fineshade Woods.
A spokesman for the company said: “A revised application for Fineshade has recently been submitted to the local planning authority for consideration.
“This application site includes a larger enhancement/mitigation area, none of which is in designated ancient woodland.
“Forestry Commission England supports Forest Holidays’ plans to sustainably invest further in cabin sites on the Public Forest Estate.
“Together with Forest Holidays, Forestry Commission England works to ensure any proposals are appropriate to the site and offer significant environmental, economic and social benefits.”
Campaigners say if the multi-million-pound venture goes ahead it will threaten wildlife habitats and spoil the beauty of the woodland. Residents of Fineshade say the cabin sites are surrounded by ancient woodland and claim they will harm bird, bat and badger habitats.
The company says the development would help safeguard the wood, boost the local economy and create jobs.