The supermarket giant wants to extend its store on the land it currently owns to provide more shopping space.
It intends to introduce a cafe and has pledged to provide 100 new part-time and full-time positions.
The public is being invited to post its views at the South Street store ahead of Tesco submitting a planning application to Rutland County Council's planning department.
Tesco corporate affairs manager Tony Fletcher believes there would be a number of benefits for Oakham and its surrounding areas.
He said: "It's a major investment because it will effectively double the size of the site. We aim to provide a better service."
Rutland County Council and Oakham Town Council representatives have already been invited to view the plans.
The authority's members are remaining tight-lipped about their personal views on the project until more information is provided and former discussion are held at meetings.
County council chairman Edward Baines (Con) said: "It's early days and what we have seen so far is only a broad outline."
Town councillor Alan Kelly is taking a similar stance. "Tesco is casting a stone to see what people think but the town council is yet to discuss the plans and I think it's too early to say what the impact could be," he added.
However, Brooke Road resident Oliver Simper said he was "deeply concerned" about the expansion, with worries about the impact of extra traffic in the area and the potential for flooding.
He added: "Does the town need an extension to the store given the recent refurbishment of the Co-op superstore?