TESCO has vowed to find a new site for a superstore after the Co-operative pulled the rug from its development plans by sealing a six figure 10 year sponsorship deal with Cinderford Rugby Club.

Speaking for Tesco, Felix Gummer said: "we remain committed to bringing a superstore to the town. Our supporters who are worried about their jobs and town centre regeneration must be reassured that we will now work with the council to find an alternative site."

His words were echoed by Richard Payne, development manager for Kitto Developments Ltd which has ploughed money into the out-of-town St White's site, where the rugby club was intending to move.

"It's very much a case of the rugby club deciding to take money from the Co-op for a short term gain, but that's life. We're still working with Tesco to bring a store to Cinderford."

Hours earlier, the board of Cinderford Rugby Club and Ben Reid, chief executive of Mid Shires Co-operative made the announcement which scuppered Tesco's plans to build on the rugby club site.

Rob Worgan, club chairman, said: "We're very happy to announce a 10 year sponsorship deal with Mid Counties Co-operative. It means an end to plans for a store at the ground, offers significant investment for the club, removes all the uncertainty of the last years and means we can move forward."

Describing the deal as a "win win" for the club, he said they'd still own the grounds and the money would be used to upgrade the club house, grounds, fencing and changing rooms and ploughed into developing a junior rugby academy.

For the Co-operative, the deal secures jobs, gives them access to overspill car parking at the Dockham Road grounds, and the opportunity to expand their store.

Ben Reid said: "Our staff are going to breathe a huge sigh of relief because their jobs are now secure. And with the extra parking we can add a few thousand extra feet to the store. If it is technically possible, I will be doing that."

But regeneration plans for the town centre itself appear to be off the agenda for now.

Tim Holder, chairman of Cinderford Town Council said: "All this nonsense about a sponsorship deal, it's just a deal to spike the Tesco application. Under the Tesco deal, money would have come into the town. Now there'll be no boost for the town, no competition and no extra cash for the town centre."

Finding a new site for a superstore in Cinderford isn't going to be easy for Tesco. Under their contract with the rugby club, which expired at the end of August, the club would have moved to an out of town stadium at St White's fields, which have been drained and levelled for the purpose.

Mr Holder said: "That's totally outside any development area for the town and the rest of Cinderford is surrounded by wooded areas which can't really be developed. There are first class pitches up there at St Whites, but they could turn out to be a white elephant."