Although the company is not saying what the level of investment is going to be in the project, it is understood it will be between £5 million and £10 million.

The Tesco spokesman said it appeared the company’s commitment to a development on South Road was wrongly being called into question at last night’s meeting of the development quality committee.

“We are incredibly serious about this development,” he told the Evening Telegraph. “It will happen this year, hopefully by the summer.”

The spokesman said that Tesco had only completed the missives for the B&Q building a few days ago and would be submitting the necessary building regulations approval application to the city council, hopefully within the next week.

The plan was to start work on refurbishing and extending the former DIY store as soon as possible and the development would represent a “sensible size” for the area.

The spokesman said last night’s 14-12 decision by the development quality committee to back the Asda superstore plan was “disappointing”.

Tesco was aware the application would now have to go to Scottish Executive ministers and, depending on their decision, the company would then consider what further action it might take.

While Tesco was voicing its disappointment today over last night’s decision, Asda was, predictably, expressing its satisfaction with the vote in favour of its plans.

A spokesman for the company in Scotland today, “We have taken a long time to get where we are now — the planning application was originally lodged with the council in August of 2000 — and a great deal of work has been done by Asda and the council to reach this stage.”

Asked about Tesco plans for a store barely 200 yards away from his company’s site, the Asda spokesman said supermarket competition was “a healthy thing” and the main beneficiaries would be Dundee’s shoppers.

“Asda has no problems in competing with Tesco in Dundee,” he added.

Because the city council owns the site of Asda’s proposed 90,000 square feet superstore and petrol filling station development, last night’s decision by the development quality committee will now be referred to Scottish Executive ministers.

The ministers will have the options of simply referring it back to the local authority for a formal decision by the council, or calling it in so a public local inquiry can be held into the matter.

Because of the level of opposition last night, the impact the Asda development will have on the local area and the opening of a Tesco supermarket nearby now apparently just months away, a public local inquiry into Asda’s controversial plans appears to be a possibility.

It is also possible ministers may delay a decision over the Asda issue until after the conclusion of a public local inquiry into the Finalised Dundee Local Plan Review, due to go ahead in Dundee in April.

The zoning of the Asda site — together with three other substantial potential supermarket sites in Dundee — will be high on the agenda for the public local inquiry.

There was strong opposition to the Asda plan last night, with detractors, including Tesco, voicing concern over road safety, loss of amenity and other issues.

If ministers decide simply to leave it to the city council to make a formal decision over the development, opponents are expected to mount a further legal challenge, possibly via the Court of Session in Edinburgh.

Should it be decided to hold a public local inquiry into the plan then Asda, Tesco and others will bring out their expert big guns to argue their respective cases.

Councillor for Ninewells, Nigel Don, who opposed the Asda application last night, said today he was “absolutely disappointed” over the committee decision relating to the development in his ward.

“I felt at the end of the day the views of the local residents were not represented by the decision,” he said, adding, however, that it was clearly not the end of the matter.

Mr Don said what was now to go ahead on the former B&Q site appeared to be an “excellent store” for the needs of the area and there did not appear to be a requirement for another, bigger store as well.

Asked if he would be in favour of a public local inquiry into the Asda application going ahead, Mr Don said he would support “anything that’s going to get the matter properly aired.”