But the supermarket chain says it has not given up hope of developing the former brewery land.

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Mountview Securities has submitted a planning application for the regeneration of Sunderland Retail Park, off Newcastle Road.

The scheme includes a supermarket. Tesco is Mountview's preferred operator if the scheme gets the thumbs-up.

The supermarket chain bought the Vaux site shortly after the brewery closed nine years ago and has been locked in a row with development company Sunderland arc over the future of the site.

The supermarket proposed would have 138,500sq ft of shopping space – the size of a large Tesco Extra. It is thought unlikely the company would want another big shop across the river.

Regeneration chiefs are hopeful the firm could be willing to part with the Vaux site if it gets the go-ahead for a store on the retail park site – just across Wearmouth Bridge.

Mountview Securities managing director Nick Chappell said: "Submitting the planning application is an important step towards regenerating the retail park and securing local jobs.

"At our recent public exhibition, the response was overwhelmingly in support of the redevelopment."

The Echo revealed in February that talks were under way with Tesco, sparking hopes that an end could be in sight to the row over the Vaux site.

Arc chief executive David Walker believes a deal to take Tesco to Roker could bring an end to the stalemate.

"This site is a more appropriate location for a supermarket and will bring much-needed regeneration to this part of the city," he said.

"Tesco's plans for Sunderland Retail Park will complement our proposals for the Vaux site."

A Tesco spokesman said: "Tesco has always said it is still seeking to progress the Vaux site and is continuing discussions with the council.
"They are two separate applications."

After a public inquiry into the city council's Unitary Development Plan last year, a Government inspector ruled the Vaux land should not be used for large-scale retail development.

The proposals for the retail park site have been designed to make it a more attractive and safe location, with improved access for both pedestrians and cars.

Website www.sunderland retailpark.co.uk has been set up to provide more details of the proposals.

Sunderland Council leader Paul Watson said: "The council has said all along that Tesco is the kind of prestigious company we want to bring into Sunderland, but in the right location.

"This application, if it diverted Tesco's superstore proposals away from the Vaux site, would be a positive step forward in the regeneration of both the city centre and the Monkwearmouth area."