GERMAN supermarket giant Aldi is set to go toe-to-toe with retail rival Lidl in Southampton after revealing plans for a new store.

The discount grocery chain has announced plans to build a new multimillion-pound supermarket in Bursledon Road – less than a mile from the nearest Lidl.

Aldi hopes to turn the site, part of the East Point centre complex, into a new supermarket, which it says will create up to 40 local jobs.

The retailer is also planning a new drive-through coffee shop, while leaving a "proportion of the site" for housing.

An Aldi spokesperson said: "We know that many local residents are travelling some distance to enjoy the ALDI offer, opening this store would make it even easier for people to shop and save in their local area.

"This multi-million pound investment would provide an enjoyable shopping destination in a high-quality building.

"Aldi’s opening would also create up to 40 new jobs, we would actively seek to recruit people from the local area to fill these positions."

Plans for the site, previously home to the East Point education centre, have been discussed for several years.

The site was once touted as the future home of Itchen College – before plans were scrapped.

Part of the site was later developed into the new East Point Community Centre, which opened in 2011.

But the £10 million building was shut in 2014 after it was put into administration.

It was saved, and renamed High Point Centre in 2014.

Last year, plans were approved to turn the remaining part of the site into a new 114 flat complex, along with 36 family homes.

But, despite developers gaining permission, the development never went ahead.

Now Aldi plans to construct a "new, contemporary, sustainable store", in the hope of "maximising the potential of this underused site."

A spokesperson for the discount supermarket chain says the addition of a coffee drive-thru will "further improve local facilities and lead to a further 20 new jobs."

Aldi says it has sent out thousands of leaflets to local residents in the hope of getting feedback on the plans.

If accepted, it will be Aldi's second store in the city, with the German retailer already having a store in Bevois ward.

The new supermarket will also be within a mile of retail rival Lidl's nearest store, located at Antelope Park, also on Bursledon Road.

It comes after Lidl announced plans for two new stores in Southampton.

The German retailer is eyeing a new supermarket on Banister Road, near The Avenue, and another on Lower Brownhill Way.