Kaifeng authorities planning to restore the city's historical appearance of its downtown area, denied on Sunday that there is a "removal plan" for residents while renovation is taking place, Southern Metropolis Daily reported on Monday.

The city, an ancient capital of seven dynasties in Central China's Henan province, plans to restore the historical outlook of its peak period in the Northern Song Dynasty (960-1127), Wang Xuejie, vice-mayor of Kaifeng, said in a report released on the city government's official website on Saturday.

A total of 80,000 families, almost a third of the city's population, will have to move out of the downtown region in the next four years, according to a report in the China Business Journal.

The demolition and relocation will cost at least 100 billion yuan ($15.7 billion). The city's financial revenue was just 5 billion yuan last year, said the report.

The project stirred fierce criticism online after the media report. Many people questioned whether the huge cost was affordable and whether it will harm the interests of local residents.

However, a local official on Sunday denied the China Business Journal's report that residents were forced to move out, saying that the project benefited local people, who could now move into better houses.

As for the huge investment, the official said it was an estimation instead of real input.