PLANS to create a multi-million pound supermarket in a north Durham town have been put on hold.

Retail giant Tesco has said plans for its long-promised development in Stanley is under review.

The firm was granted planning permission in 2011 for an 86,500 sq ft store, the same size as the new outlet in Consett, but scaled down its plan for a 61,000 sq ft store last year.

Public consultation was carried out early in the year but the chain has since confirmed the development may not go ahead after all.

Tesco’s corporate affairs manager Mark Thomas said: “The new application has not been submitted yet. It is effectively paused.

“Basically, our new chief executive is reviewing the whole business. Everything is being looked at and it has been put on hold.”

Tesco owns the disused Tommy Armstrong Centre building in the town centre where the development was set to take place with the promise of 250 jobs.

Mr Thomas said he hoped to have an update on the proposal in the New Year.

He said: “We have gone a long way with the process in Stanley so we are gathering everyone’s thoughts for the things that are required to put together the new application. It is under review.

“Nothing really has changed in the desire to develop. We are reviewing what the best offer for Stanley is.”

The new superstore was to be raised with an underground car park, like the new outlet in Gateshead, but that plan was shelved during a rethink last year.

Plans to sell larger electrical goods, including televisions, were also downgraded.

Mr Thomas said one option the company was considering was a smaller Metro store for the town centre.

He said: “We are grateful for the community’s patience and we hope to provide an update in the near future.”

It had been hoped the development will regenerate Stanley following two devastating fires before Christmas in 2013.

North Durham MP Kevan Jones said: “This is disappointing news, it has been long promised.

“I will be asking for a meeting with Tesco because in the mean time urgent action is needed on the site.”