DIY GIANT Homebase today insisted it was to stay at its city centre store - despite a threat from a supermarket chain to knock it down.

The Sainsbury's store on Foss Bank, York, has put forward revised plans for a massive new supermarket in the store, which would involve knocking down Homebase next door - but the DIY store has retaliated by putting up signs saying it will not close.

A spokesperson for Homebase said today: "Absolutely no deal has been made between Sainsbury's and Homebase. Homebase has no intention of leaving the store."

Plans to knock down both Homebase and Sainsbury's buildings and replace them with a £12 million new Sainsbury's together with 15 homes were originally sent to planning officers in 2001, after Homebase was bought by Schroeders Capital Venture Group in March that year. Residents nearby were consulted when the new plans, without the housing, were submitted in February this year, but council officers have not yet made a recommendation to the planning committee on whether the building should go ahead.

Cliff Carruthers, head of development control, City of York Council, said: "The Conservation Area's Advisory Panel has made comments about the form, height, massing and materials of the building. They are one of a number of consultees on this issue and their comments will be taken into account when we consider the scheme."

A spokesperson from Sainsburys was unavailable for comment.

Updated: 10:14 Saturday, October 18, 2003