Supermarket giant Tesco is believed to be “significantly interested” in developing a new store in Hednesford.

Developers St Modwen, who are leading the phase two regeneration of the town, are thought to be in talks with the supermarket to build a large foodstore in the Victoria Street area.

It is thought the store will lead to the creation of 250 to 300 new jobs.

This is the third and final regeneration project in Hednesford after the Lightworks development and the Hednesford Gateway scheme at the Rugeley Road end of Market Street.

The Lightworks will open on April 23, while work on Hednesford Gateway is to start this summer.

Tesco, which is thought to get £1 for every £8 spent in retail in the UK, is also on the brink of submitting a planning application for a site on Leathermill Lane, Rugeley.

But councillor Danny Davies said having a large retailer involved in talks was great news for the area.

Councillor Davies, who is responsible for town centre development in Cannock Chase, said: “A large retailer is significantly interested in developing in the town but I can’t say who at the moment. They already have a presence in Cannock Chase and they are keen.”

Owen Dadis, from Tesco, said: “At this stage it is too early to reveal any details about Hednesford but at a later stage we will of course talk to the local community when the time is right.”