It has become known as "Tesco Town" because of the supermarket's dominance of the shopping scene in Inverness but that stranglehold may soon be broken.

Earlier this year, a bid by Tesco for a fourth supermarket in Inverness was turned down on the basis that the scale of it went against the local plan.

Tesco already accounts for 51p of every £1 spent in the Highland capital on food but now Sainsbury's or Asda are set to try to win a share of that.

Property developers Macdonald Estates is to seek planning permission for an 80,000 sq ft supermarket, employing around 350 people, on a site currently used as a maltings on Longman Road. The company is in discussion with Sainsbury's and Asda to open a store on the site.

In addition to the new store, the development would include 50,000 sq ft of non-food retail outlets, employing up to 250 people, a petrol station and car parking.

Dan Macdonald, chief executive of Macdonald Estates, said: "It is our intention to provide customers with increased choice by bringing a new supermarket to Inverness.

"A supermarket at this site would create a better distribution of food stores in the city and, along with the other aspects of the development, bring a substantial number of new jobs. Our landscaping plans would improve the look of one of the major routes into the city centre."

Macdonald Estates submitted an application for outline planning permission for the site last year. It is currently carrying out traffic and retail impact studies as part of the next stage of the project and it is likely the application will be considered by the Highland Council by the end of this year.