Tesco could move to a new larger site just across the road from its present base at Askham Bar, York.
York College has begun discussions with the supermarket giant about the possibility of selling one of its two campuses for re-development with a massive new store.
But the talks are still at a very early stage, with a range of vital planning and commercial issues yet to be fully investigated.
York College revealed in the summer that it was planning to sell at least one of its two bases in Tadcaster Road - the former college of arts and technology and the former sixth form college which are now amalgamated as one college.
It was either going to sell one site and build a new college complex on the other, or sell both and build a new college elsewhere in York, possibly on land behind the station.
Tesco told the Evening Press in February 1998 that it was considering expanding its current 95,000sqft Askham Bar store in Tadcaster Road, which opened in 1990. But no planning application has ever been submitted to City of York Council for this site, although one has been put forward to expand its store at Clifton Moor.
A store spokesman today declined to confirm or deny whether it had any interest in moving to the college site. "All sorts of people, from chartered surveyors to landowners, approach us with all sorts of proposals.
"We do obviously look at these things to see whether they have serious possibilities - but just because we evaluate lots of things, it doesn't mean it's something we are going to do."
But he said the company was certainly seeking to provide an even better service to its customers in York.
"We are fortunate in that we do have quite strong demand for our services in the York area. The question is - and I am not talking about any particular site here- how best to meet the demand that we know is out there."
He said the climate for further investment in the York area was good, but the availability of land and planning issues were two key issues that would have to be addressed in any investment proposals.
College principal Mike Galloway said it was involved in initial discussions with a number of interested parties about what might happen on its sites, but stressed that talks were still at a very early stage.
Tesco was clearly one of the interested parties in the area - although it had only recently completed a refurbishment programme at its Askham Bar store.
But he stressed that planning issues such as traffic were central to the future of the sites, and discussions were also taking place with officers at City of York Council. "We want to do the right thing in terms of the city," he said.
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