The scheme, which is being backed Aviva, will see the supermarket chain build a new store three times bigger than the current building.
Above the store will be extensive car parking on two levels, with a 98-bedroom hotel above that in a new five storey building. The whole project is expected to cost around £20m to build.
The proposals redevelop a key brownfield site and help to kick start the regeneration process in Redhill town centre.
WYG acted as the planning consultant on the scheme.
Gary Morris, regional director of planning and design at WYG said: “The proposal will deliver a high quality mixed use scheme on a key gateway site in Redhill town centre, it’s a great example of sustainable economic development and should give a big boost to regeneration in Redhill.”