Supermarket discount chain Aldi are understood to be acquiring the Greenhous Ford site in Pool Road, Newtown for a new store.
Last month Greenhous confirmed it was closing its Ford dealership at the site saying it had been unprofitable.
Aldi, which has been actively seeking locations in the town over recent years, is understood to have agreed to acquire the site which is next to the town's Morrisons supermarket.
MyNewtown has contacted Aldi for a comment.
Lidl already has a site in Llanidloes Road and its competitor Aldi opened its nearest store in Welshpool in recent years.
However, despite negotiations with the St Giles Golf Club and other landowners in Newtown, Aldi has so far been unable to purchase a site.