St Modwen Properties is in negotiations with a new supermarket operator to anchor a £150m scheme in Liverpool after a deal with Tesco fell through.

The developer is close to agreeing a deal with another supermarket to replace Tesco in the proposed 115,000 sq ft store in Great Homer Street – the largest food superstore in Liverpool.

It was unable to secure approval for the store on the terms needed to allow the wider regeneration to go ahead.

Michelle Taylor, regional director for St Modwen, said: ‘It is unfortunate that we could not come to an agreement with Tesco following lengthy negotiations.

‘However, we are now in negotiations with a new operator and are confident that we can secure the terms necessary to move forward with our exciting proposals to transform north Liverpool.’

The food store will be at the centre of the North Liverpool scheme, which will have another 80,000 sq ft of retail as well as a library, market hall, leisure and community space.