Part of J Sainsbury's 100,000 sq ft store at Heaton Park in Manchester is to be converted into discount supermarket Netto, in a UK-wide roll out of the Scandinavian brand.
The 10,000 sq ft Netto at Heaton Park is one of 15 stores to be opened across the north by 2015, after Sainsbury's announced in June a partnership with owner Dansk Supermarked.
Netto will be co-located with the Sainsbury's store in Heaton Park but will have a separate entrance.
A Netto is also being established in Moortown in Leeds.
The launch of the discount chain is understood to be part of Sainsbury's strategy to compete in the same market as Aldi and Lidl.
A spokesman for Netto said: "We are developing plans for a number of new Netto stores, including Heaton Park in Manchester, and will continue to update people as we progress."