The retailer has decided to push ahead with the 140,00 sq ft store plan at the city’s landmark Royal Hospital site after a decade long planning battle with Sainsbury’s.
Tesco is understood to have signed a deal with B&K, despite shelving several schemes like one in Northampton after a rethink of its expansion strategy.
The retailer plans to regenerate 10 acres of derelict land include an innovative design of the superstore to restore and incorporate the existing historic building.
The development will comprise the anchor 97,000 sq ft superstore, together with 34,000 sq ft of office and community space, 9,000 sq ft of smaller retail shops, a restaurant, cafe, and petrol filling station.
Local council officers described the plan as “a catalyst for the continued regeneration of the city”.