The discount supermarket chain wants to build a 13,500 sq ft store at Fallowfield Retail Park after it acquired part of the complex from CBRE Global Investors for an undisclosed sum.
Lidl plans to redevelop the Birchfields Road site in Manchester, which is home to occupiers including Jolleys Pet Store and Pizza Hut, to bring forward its seventh store in the city.
The developer is working alongside occupiers at the retail park that are understood to have short, flexible leases, as it draws up plans for the project including the demolition of units 7, 8 and 9 at the southern end of the site.
Hawthorn Medical Centre, which occupies unit 9, would remain at the site under the proposals.
CBRE GI retained the other half of Fallowfield Retail Park, occupied by Home Bargains, Iceland and the vacant unit, under the deal.
Elsewhere in Manchester, Lidl operates stores in Harpurhey, Openshaw, Piccadilly, Longsight, Rusholme and Baguley.
Lidl is also progressing plans to build a store at Mocha Parade in Salford.