Sainsbury's has been given the go-ahead to build a supermarket in Melton which will create 350 jobs.
The decision will pump about �15 million into Melton Borough Council's coffers from the sale of land on Nottingham Road, where its fire-damaged offices once stood.
A rival bidder acting on behalf of Waitrose to build a store on the Brooksby Melton College site, in nearby Asfordby Road, which would be redeveloped, is to seek legal advice on the decision.
That bid is due to be the subject of a planning inquiry in June.
The council approved the Sainsbury's scheme in January and automatically referred its decision to the Secretary of State.
This week, the Secretary of State confirmed he would not be "calling in" the application, paving the way for the store to go ahead.
Robert Oxley, Sainsbury's Development Executive, said "Sainsbury's is delighted the Government office has not called in the application and is looking forward to coming to Melton Mowbray.
"We are currently finalising the section 106 with the council and will then be able to look at a time-scale to begin work on site."
The council's head of regulatory services, Jim Worley, said: "The Secretary of State considered the application didn't raise any issues of such wider significance as to require determination by him.
"He also said he'd considered all the matters put to him about the application."
Chris Carlisle managing director of Cedar House Investments, which has submitted the Brooksby Melton College bid, said they were taking legal advice on the matter.
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