A SUPERMARKET giant is in talks with a popular discount store over plans to regenerate a town centre.

Clearance Bargains, which is owned by Argos, currently stands on the site where Tesco wants to build a multi million pound superstore.

The retailer hopes to have the store open to the public by 2018, but Clearance Bargains said the lease on its current building does not expire until September that year.

Tesco, which was backed by planners in 2011, has said it will submit a revised planning application this summer for the development, which will create 250 jobs.

It is unclear whether building, scheduled to start late 2016 or early 2017, will begin around the current building, or whether the two companies will reach an agreement before then.

Mark Thomas, corporate affairs manager for Tesco said: “It is something that we are still in discussions with Clearance Bargains about.

“There is a possibility that there lease would have to expire before we could begin, but we are determined to bring the store to Stanley and we want to keep talking to them to see when we could possibly start.”

Mr Thomas said the current plan Tesco has includes the demolition of the current Clearance Bargains store.

He added: “It will be unlikely that we are able to build around the store.”

A public exhibition earlier this month attracted more than 150 people who came along to examine the company’s plan in more detail.

It has the backing of North-West Durham MP Kevan Jones, and several members of Stanley Town Council.

Although some small traders on Front Street fear the impact the store will have, others believe it will attract people to the town centre and have a positive impact on the local economy.

Business has been hit severely in recent months after two major fires destroyed two historic buildings on Front Street.

The Clearance Bargains building is owned by the Santon Group, which was unavailable for comment when contacted by The Northern Echo and Advertiser.

A spokesperson for Argos said: “The lease on Argos’ Clearance Bargains site in Stanley does not expire until September 2018.”