Trilogy Developments, which recently bought the land in Old Warwick Road, wants to build a Morrisons store where the car parts plant once stood.

The company's managing director Patrick Stone said: "I am delighted that we have now secured Morrisons to provide a foodstore within the foundry site.

"Introducing Morrisons to the town will give local people greater food shopping choice in a convenient location."

But Trilogy's scheme does not fit in with the masterplan for the station area devised by Warwick District Council and consultant GVA Grimley two years ago.

The plan, written after a public consultation period during the summer of 2008, states the council's intention that the area in Old Town is transformed into a "gateway to Leamington".

The document highlights the foundry's potential to be turned into a 'mixed-use' area, but it also points out that the site is designated in the council's 'local plan' as protected employment land.

The council's head of development services Paul Pinkney said: "We have set out our aspirations as a council. We would like it to be a mixed-use development where any sort of retail would be ancillary.

"We are aware that Trilogy's favoured development would be an out-of-town supermarket. This would go against both our local plan and national planning policy.

"At this time in our negotiations with Trilogy, it is not our preferred option."

Warwick district councillor John Barrott (Labour, Leamington Willes), who used to work at the Ford site, said: "There needs to be something there that's going to create jobs for our community. What exactly that is is another matter.

"I would like to see people investing in manufacturing out there. One of my passions is to keep it as employment land."

Leamington mayor Cllr Balvinder Gill said he had "mixed views" over Trilogy's plans.

He said: "Building a big supermarket there might have a bad effect on the shops in High Street and Clemens Street and the rest of Old Town.
"It would be better if that sight were used for manufacturing.

"At the same time, it will give a better presentation for people entering Leamington from Myton Road and Europa Way."

He added: "There are high tech job opportunities in Leamington, but there are people who won't go into higher education and they need some skilled jobs to go to."

Members of Trilogy's project team will be available to answer questions and discuss their proposals with residents at a public exhibition of the station area masterplan at Leamington town hall.

The display will be open on Friday March 19 from 3pm to 7pm and on Saturday March 20 from 10.30am to 3.30pm.

The masterplan can be viewed at www.warwickdc.gov.uk