The job has been on hold while supermarket giants Tesco and Sainsbury’s battled over a parcel of land at Raglan Street in Graisley.

The wrangle with Tesco, which owned 10% of the land, went all the way to the High Court and was only resolved when Tesco was told it could develop at store at the former Royal Hospital site in the city.

Preparation work has already started on the supermarket and a formal construction start date will be revealed in the new year.

Plans include a 90,000 sq ft superstore, an 810-space car park and petrol station as well as 45 homes and 85 apartments with gardens and car parking spaces.

Sainsbury’s project manager, Nick Alston, said: “We are delighted to have agreed a deal with Tesco and we look forward to returning to build the store.”

Tesco will create a new £60m supermarket on the former Royal Hospital site on the edge of All Saints. The site will include offices, retail and a museum celebrating the former hospital’s heritage.

B&K is also understood to be line for the hospital conversion job, which has been held up until the middle of next year because a public inquiry.