Significant parts of an Islamic school's proposal for a masterplanned hub in Brisbane's south-west has been rejected by the Brisbane City Council, with the site restricted to educational purposes.

The Australian International Islamic College (AIIC) at Durack lodged a development application, with the council in February 2015 proposing a childcare centre, mosque, a multi-storey residential building, medical centre and aged care facility be built on the school's site at 724 Blunder Road.

A proposed Islamic hub at Durack has received conditional approval from Brisbane City Council. Credit:Michelle Smith

On Thursday afternoon the council issued conditional approval, which did not allow the proposed residential building, aged care or shops on the school grounds.

The council permitted boarding facilities for students who lived outside of Brisbane, similar to facilities at many other independent schools, but said no to non-educational residential buildings.