TWO major supermarkets appear to be neck and neck in the race to open a new store in Lydney.

Sainsbury's wants to build a store at Crump Farm, Naas Lane as part of a wider development while Asda has its eye on a site near Federal Mogul and both could be considered by the Forest Council on September 10.

The application by Sainsbury's and local developers Robert Hitchins has received a boost after Lydney Town Council – which has concerns about the impact of the project on the town centre – wrote to district planners saying there have been significant changes since its original objection in March.

Asda, meanwhile, have sent out postcards with this week's Review to allow people to send their views on the Federal Mogul proposal to the district council.

While the town council's objection to the Crump Farm still stands it says new proposals by Sainsbury's would "mitigate" its concerns.

It has welcomed the possibility of the scheme unlocking prime industrial land on the east side of Lydney which could bring jobs.

Sainsbury's has also withdrawn its proposal for a "neighbourhood centre" which was a major concern for the town council which feared the impact it could have on the town centre.

The town council said a commitment from Sainsbury's, made since the objection was lodged, to assist with the regeneration of the town and the market square plan and could also fund community transport, a market feasibility study and shop front improvements "now addresses most of the council's material considerations."

Ben Littman, Sainsbury's regional development manager, said: "We are delighted that Lydney Town Council has continued to engage with us and that we have been able to address most of their concerns."

The town council's chief executive, Jayne Smailes, said: "Our objection still stands but the mitigating elements suggested by Sainsbury's go a long way to addressing the town council's concerns."

A spokesman for Robert Hitchins said: "We respect Lydney Town Council's position and understand councillors' concerns. Our discussions with them have been very positive and we hope that the Forest of Dean district councillors will view our application favourably."

Robert Hitchins is proposing to build 300 homes with a new roundabout off the by-pass and contributions to community facilities. The company says that without Sainsbury's the plan is not viable.

The Asda application on a "brownfield" site would also see a new building for JD Norman – the new owners of Federal Mogul – which it says will help secure the long-term future of the factory.