Plans to build the supermarket on the site of the Smithfield Livestock Market in Newtown have been on hold for 18 months.

Powys County Council was served with a holding directive on the application after local residents voiced fears about the potential traffic impact of the development.

A spokesman for the Welsh Assembly said: "Residents asked for the application to be called in because of the highways impact of the development.

"We have served a holding direction on the application and there is no decision on that and we will not make one until the local authority provides a report which we do not expect before June."

It is understood that the initial proposal by Tesco to create a roundabout on Pool road near Snax 24 was deemed unacceptable.

The County Times understands that a new proposal has been submitted which would use traffic lights to control the flow of traffic as opposed to a roundabout.

A spokesman for Powys County Council confirmed it had received a new proposal.

He said: "The council has received amended plans from the applicants with changes to traffic management plans for the proposed development. The amendments are currently being considered by traffic consultants."