The Homes & Communities Agency has agreed to sell a derelict site in Gilmoss to Liverpool City Council for a supermarket development.
The 70,800 sq ft food store and petrol filling station will be built by Regeneration Liverpool, the council's joint venture with Sigma Inpartnership. Planning permission for the project was granted in June 2013.
No operator has been confirmed yet but the sale of the land will allow "talks to be finalised with a major chain", a spokesman for the council said. There would also be a parade of smaller shops developed alongside the supermarket.
The plans support the wider regeneration of the 90-acre Stonebridge Cross development, which will include a 1.25m sq ft distribution centre, proposed by Gallan Estates and Stoford and rumoured to be for Amazon, a health centre, community hub and St John Bosco Arts College, which is on site and due for completion in September 2014.
The derelict site lies off the East Lancashire Road in Gilmoss, and was once occupied by the Gillmoss estate.