The supermarket chain is also understood to be in talks with Lincoln firm Simons Group to build the new store on the site of Melton Council’s former offices and the adjoining long stay car park in Nottingham Road.
Melton Council’s contract with Sainsbury’s for the former Nottingham Road site has been signed, swelling the council’s coffers by a reported £12-15m.
The agreement with Sainsbury’s to build the 65,000 sq ft store will also see it making contributions £220,000 contribution towards several town initiatives.
A Sainsbury’s spokesman said: “The programme for the store works is still being organised and we will confirm a start on-site date in due course.”