WAITROSE is drawing up plans for a new store on the Rutland County College site in Barleythorpe Road, Oakham.
The supermarket chain says the new store would create 120 jobs.
The college is due to move to Barleythorpe by 2013.
Waitrose has not yet put in a planning application, but it wants to create a 15,000 sq ft food store and car park at the junction of Barleythorpe Road and Lands End Way.
Sainsbury’s also wants to open a store in Oakham in Burley Park Way. It has submitted a planning application to Rutland County Council, which has yet to make a decision.
Waitrose director of development Nigel Keen said: “Waitrose has a long-standing ambition to open a store in Oakham and firmly believe the Barleythorpe Road site offers us the perfect platform to meet the need for a new supermarket.
“Whilst we would not be able to pursue the scheme if Sainsbury’s plans are given the go ahead.”
Waitrose says it wants to hold a public consultation before submitting a planning application.