Supermarket chain Lidl could get the green light to open a new store in Lemington next week.
The German retail giant is hoping to develop a new shop off Scotswood Road, on the site of the former New Tyne Iron pub.
The plans are expected to be approved by Newcastle City Council's planning committee next Friday, despite objections from rival supermarket Asda which has a nearby store.
Asda has claimed that the budget chain will "draw shoppers away" from existing retailers and has argued for a full assessment of its impact to be published.
Plans for luxury Newcastle city centre student flats with 'sky lounge' and cinema set to be rejected
However, local authority planning officers have concluded that the site "would not be harmful to the vitality and viability of existing centres".
The scheme would also include the building of a car park with 109 spaces and would create up to 40 full time jobs, as well as more during construction.
The objection submitted by Jigsaw Planning on behalf of Asda states: "The applicant suggests that Lidl's trading philosophies differ from a traditional supermarket by selling from a limited core range (compared to other supermarkets) of mainly exclusive own labels.
"However, while this may have been the original philosophy of the 'deep discounter' it is evident that there has been a slow but steady change towards that of a traditional supermarket when considering store size, ranges on offer, proportion of comparison goods, and labelled goods."
A second objection on Asda's behalf also raises concerns about the impact of increased traffic in the surrounding area.
Lidl representatives have said that the fears raised by Asda are "already fully addressed".
In a letter sent to the council, they added: "The Asda letter makes an unsupported assertion that 'deep discounters' are engaging in a 'slow but steady change towards that of a traditional supermarket' and that the turnover of the store should therefore be more akin to that of other food store operators. No evidence is provided to substantiate this claim.
"As clearly demonstrated in the planning and retaiI statement, Lidl sells substantially less products lines (approximately 2,000) compared to up to circa 40,000 product lines being sold by the 'big four' operators."
The existing two-storey building on the site and associated outbuildings occupied by Norland Construction would be demolished to make way for the Lidl.
Previously approved plans to develop the land for more than 30 new homes never came to fruition and planning permission has since lapsed.
Newcastle bar Browns to be renamed All Bar One - and get £700,000 makeover
Hundreds of students could move into Kings Manor Business Park
