A MULTI-MILLION pound supermarket is to open in Chester-le-Street town centre by the end of summer, creating more than 200 jobs.

Following years of delay, the new Tesco store is expected to be built near the town's market place by the end of August or beginning of September.

The major development was put on hold for four years, while a public inquiry was held.

The plans were referred to the High Court, after food retailer Co-op applied for a judicial review.

Co-op has a store close to the Tesco site and argued that a major food store would threaten its branch. But the application was turned down following a three hour hearing.

A spokesman for Tesco supermarket said the company would begin recruiting for the 25,000 ft store within a couple of weeks.

It will be located in an area of town earmarked as the new Civic Heart. This will create a new central focal point for the town with art work, seating and space for various events such as concerts.

Plans are currently being finalised for the the town centre improvements and work should begin on the civic heart once Tesco has opened its store.

The market place is also in line for a total revamp. There are plans to attract more specialist arts and craft stalls and create more permanent stalls.

Several small businesses near the development have had to be relocated, with money paid to them by Tesco, to make way for the new supermarket.

Generally traders have welcomed the arrival of a new supermarket to the town centre, saying it should bring more visitors to Chester-le-Street.

Alex Nelson from the town's traders' association said: "In general terms people see this as an improvement to the shopping facilities in the town. If it had been on the edge of town, at the Riverside for instance, then we wouldn't have been as welcome.

"But the fact that the supermarket is close to the town centre means there is more likelihood of people visiting other shops and outlets in the town centre, as well as the supermarket."