The council hopes to agree to purchase Forge Island from the supermarket giant in November as it looks to prepare it for investment.

The 4.2-acre site is located between the River Don and the South Yorkshire Navigation Canal and became vacant in November 2014 when Tesco relocated to a new store in nearby Drummond Street.

After being used as a car park operated by the council, demolition work is set to begin in December, after which the site will become a new development for the town centre.

Rotherham Council has revealed that several developers have already shown interest in the island site.

Plans for the development include a vibrant leisure quarter comprising a mix of residential units and leisure developments.

“Forge Island is a major feature in the town centre regeneration,” said Cllr Denise Lelliott, cabinet member for jobs and the local economy.

“Private investment flows into a town centre where there is development certainty and where projects can be seen to be viable.

“We are confident that this development will act as a catalyst to other development in the area and will help to regenerate surrounding areas.”

Full development proposals for the site will be prepared alongside the town centre master plan.