WOOLWORTHS says it plans to start construction of its $10 million inner city supermarket later this year after it gained final approval on the project from the Launceston City Council.
The council approved the supermarket development this week under powers of delegated authority, which meant no final approval was required from aldermen.
A 3800-square-metre supermarket will be built above a 160-lot underground car park on a block bordered by Wellington, York and Elizabeth streets.
It will sit alongside the Cock 'N' Bull hotel and BWS bottle shop.
A Woolworths spokeswoman said the company's development team was working through details within the development application approval.
She said the company would soon prepare a construction tender.
"The project's timeline will be dependent on the outcome of the tender but we hope to commence on-site in late 2014, and to open our modern, new 3800-square- metre supermarket late next year," she said.
The development is anticipated to create 150 jobs.
Launceston City Council general manager Robert Dobrzynski said the retail development was a major expression of confidence in development in Launceston.
"The concept plans indicate an exciting and vibrant development with modern architectural styling, and it also introduces undercover parking in the CBD," Mr Dobrzynski said.
"We think it will greatly enhance the streetscape of Wellington and York streets and will improve the retail offering available to commuters and others who live in, and close to, the CBD."