SUPERMARKET giant Tesco has lodged plans to build a food store and 89 homes in Fareham - potentially bringing more than 350 jobs to the town.

Planners will now consider the application for a 40,000 square foot supermarket - about half the size of the Tesco site in Bursledon - at the former foundry site off of Quay Street roundabout.

Katherine Edwards, corporate affairs manager for Tesco confirmed a planning application had been submitted.

She said: "It is a smaller scheme than originally envisaged, but following detailed negotiations with planners and highways officials at the council this is what we've gone for.

"The residential units are likely to be one and two-bedroom flats and a mix of private and affordable housing depending on what the council say, but I will have more details from our planning team soon."

The Daily Echo revealed in September that Tesco had finally confirmed its interest in the site after months of speculation.

The land had just been purchased and Tesco wanted to use it as an addition to its growing empire.

Civic chiefs see the move as the completion of the town centre following the £30m Market Quay development.

Council leader Sean Woodward said: "It's been an aim of mine ever since we got Market Quay and after the departure of Sainsbury's from Fareham Shopping Centre to bring a quality supermarket into Fareham town centre. It would allow people to do their whole shop in the town centre without having to go elsewhere.

"If they are successful in getting planning permission, that will be excellent news."

The site has been waste ground since the closure of the Gibbons foundry, which made manhole covers, over a decade ago.

The UK's number one supermarket chain now has almost 1,900 UK stores, with a floor area of 23.3 million square feet.

More than one in every eight pounds spent on shopping in this country now goes to Tesco, which has its headquarters in Hertfordshire.

Total sales last year were £16.5 billion and profits are already up on last year.