The Budgens store, in Burghley Centre, Bourne, has stood empty for more than two years and traders near the site are
desperate to see it occupied.
Waitrose, which bought the site's leasehold shortly after Budgens closed, has confirmed that it has received interest from a potential tenant.
A spokesman said: "We are continuing to market the store and have received some interest, however, these discussions are at a very early stage."
The news has been welcomed by traders in the town.
Manager of the Cancer Research shop Jane Watkin said: "We've been suffering ever since Budgens closed. The sooner something moves in there, the better."
Gordon Cochran, of Bourne Business Chamber, was happy to hear there is interest in the building at last.
Mr Cochran, who owns Gordon's Photographic, in North Street, said: "This would bring more life into the town.
"I think it would be nice to have a Co-op or Somerfield move in there."
John Sanders, of Two Jays, in the Burghley Centre, echoed Mr Cochran's comments. He said: "A new store opening there would generate trade for everyone in the town."
Anglia Co-operative is looking to move its Rainbow Foodstore from Manning Road but would not be drawn as to whether it is interested in the Budgens site.
Andy Simpson, retail executive for the company, said: "We are looking at suitable alternative locations, as we always have done in Bourne."
The Co-op was looking to move to the Opico site in South Road but has since sold the land to Tesco, which has submitted a planning application to South Kesteven District Council for a store there.