SQL03070: This statement is not recognized in this context

I just ran into the following problem:
when trying to build a database project in my VS2010 solution I got this error:

SQL03070: This statement is not recognized in this context.

After searching the first hit in Google already solved the problem:
The reason for this error is the following:

The project system expects the stored procedure as a create statement only. The additional statements to drop if existing are not necessary within the project system. Project deployment takes care of detecting if the sproc already exists and if it needs to be updated.

To resolve this error

• Simply remove the additional statements other then your create SP, Function etc.

OR

• Exclude the file from build. Right Click on your file in Solution Explorer, Click Properties > Build Action > Not in Build

Credits to: Prashant Acharya.