HOMES and a hotel could be built on land currently occupied by a Newport supermarket.

Sainsbury's has put in the plans for its present Wyndham Street site to the city council.

The retail giant intends to build a replacement, bigger store half a mile away on the former gasworks site in Albany Street.

If the proposed new 70,000 square foot supermarket gets the go-ahead it is expected to open in September 2010 and create around 200 extra jobs.

Shoppers gave the plans, which include a 670-space car park and new access road off the A4042, the thumbs up when they were displayed in the Wyndham Street store last month.

It is hoped the new supermarket will kick start the regeneration of the Crindau area.

Planners recently approved outline proposals for the £150 million Crindau Gateway development which includes new homes, student and sheltered accommodation, a hotel, offices, shops, leisure and healthcare facilities.

Flood defence work would also be carried out if the scheme on the brown-field site near Albany Street goes ahead.

A marina and canal base, next to the Crindau Gateway site, are also part of the city's vision for the whole area.

Sainsbury's outline proposals for Wyndham Street are due to be considered by the council's planning committee in the near future.