A new million pound-plus supermarket could be built in Wragby with the Lincolnshire Co-op planning a major investment in the town.
The News can reveal the Co-op has opened negotiations to secure a site close to the centre of Wragby.
The Co-op could also provide a solution to fears surrounding the future of Wragby Library.
The library faces the axe as part of controversial cuts by Lincolnshire County Council.
Campaigners fighting to keep the library open could be interested in utilising the Co-op’s existing store in Wragby Market Place.
Emma Snedden, spokesman for Lincolnshire Co-op, said: “We are in the very early stages of negotiating a scheme which could lead to us opening a new foodstore on a site near a new housing development in Wragby.
“Subject to securing that site, any permissions needed and any development progressing, we would relocate.”
The Co-op has offered a lifeline to other under-threat libraries and the spokesman confirmed they could provide a solution for Wragby.
She added: “We would be happy to talk to people in Wragby about how our current library at Waddington works, about our ideas for other sites and if there would be any way of helping them come up with a practical, workable and sustainable solution for their area.”
Barbara Bartlett, one of the leading figures in the campaign to keep the library open, welcomed the Co-op’s statement - and confirmation of a potential new store.
She said: “Wragby is growing in size. We need a bigger supermarket. We’re also fighting for our library. We won’t let it die.”
News of the Wragby development comes as plans for a new supermarket in Horncastle appear to have stalled.