It is understood that the decision was taken after Newcastle council said it wanted to see more iconic designs by a signature architect on the site by the quayside. Farrell is already masterplanner of the east quayside project.
The 32-storey tower has been the subject of strong local opposition, primarily because of its 105 m height.
The proposed scheme incorporates 104 flats, a car park, bars and a restaurant.
A spokesman for Newcastle council said: “Any discussion between the council and developers remains confidential.”
Farrell was unavailable for comment at the time Building went to press.
Robert Evans, Stephenson Bell associate director, said that the practice was not currently working on the project as it is going through the planning process.
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