It comes after local government secretary Hazel Blears revealed she would not force a public inquiry into the controversial proposal, despite fierce opposition from many in Gosport fearful of even worse traffic congestion on the busy A32.

The decision means the approval of the 70,000sq ft superstore in Quay Street given by Fareham planners in the summer now stands.

The Tory leader of Fareham Borough Council, Sean Woodward, believes the superstore on an old foundry site could be finished by the end of next year.

Ms Blears ruled there was no need for an inquiry because the development was not of national or regional significance.

Gosport Borough Council asked for the plan to be called in by the government because of the effect it would have on the A32 bottleneck linking the two towns and the impact it would have on Gosport businesses.

A delighted Cllr Woodward said: 'This is excellent news for the borough of Fareham in general and the town centre in particular.

'It's been a long-held aspiration of the council to get a high-quality large food store into Fareham town centre.'

He added: 'The decision not to interfere in our planning decision removes the last hurdle to delivering this aim which has been supported in a number of residents' surveys.

'I look forward to welcoming Tesco to Fareham.'

But Cllr Peter Langdon, of Gosport's Tory party, said: 'The whole of Gosport council wanted this called in and it's a great pity that it hasn't happened and that this can now go ahead.

'This will add more traffic to the already congested A32 and while they are building it and improving the Quay Street roundabout the traffic problems will be drastic.

'It will also mean that some people will do their shopping in Fareham rather than Gosport, which is not good for the town.'

Fareham residents have also voiced concerns, worried about the impact of the store on parking.

Fareham town centre resident Mick Williams, 59, of Southampton Road, said: 'I'm in favour of Tesco coming into the town centre but what has always concerned me is the loss of parking spaces for residents.'