The proposals to construct a new supermarket on the current Territorial Army barracks site have been delayed and may be permanently on hold while the developers and Tesco agree a price for the site.
It is understood that Tesco was prepared to offer over £14.5 million for the Manor Top site, but this offer has been reduced by the supermarket giant to £8m plus a currently empty site off Penistone Road for the TA to move in to.
The MoD have suggested that the development of a new barracks on the site could cost up to £15m at the Penistone site, opposite the Owls football ground, and they are not prepared to make up the difference if the Tesco offer is reduced.
Tesco will create 200 jobs in sheffield
If the Tesco store does go ahead it would create about 200 jobs but no plans will be submitted until an agreement has been reached and Sheffield residents are concerned they may miss out on these much needed jobs.