TWO supermarket giants are fighting to develop a prime piece of Southampton land, the Daily Echo can reveal.

Lidl and Aldi are circling on Shirley's former police station in a new battle for the city's discount market.

The Daily Echo understands the German heavyweights are locked in a bidding war which could net a big profit for the taxpayer.

Local councillors welcomed the chains' interest but warned a new store could add to "logjam" in roads and parking.

Rumours have spread over the future of the station in Shirley High Street since its closure was revealed by the Echo in 2013.

It is one of nearly 40 shut in Hampshire since 2008, dramatically changing the face of policing as the force coped with £55million cuts from the Government.

Now it could become a different sort of hub for the community.

A Lidl takeover would see it cement its dominance in the city's discount market, outnumbering its closest rival by three to one.

The chain is also opening a store in Woolston and a distribution centre in Nursling.

But a victory for Aldi – which already has plans to open its second city store in Millbrook – would spark a fierce rivalry with Lidl's existing branch in Shirley Road.

Daily Echo:

The closure of Shirley Police Station was announced in 2013

The brands are fighting price wars around the country, recently slashing prices for a full school uniform to less than £4.

Shirley councillor Satvir Kaur welcomed the prospect of more low-cost goods for residents.

"I've spoken to people in my own ward who are excited by the prospect of more options for cheaper and affordable food, but it needs to be balanced with the impact on the local community," she said.

Cllr Mark Chaloner added: "These stores are very, very popular wherever they open. If there's a feeling that people want it then I think it's a site that they could fit on."

However, he added: "Shirley High Street is already such a logjam by day and there's limited parking as it is. Parking is the clear challenge for anybody going there."

Transport issues would be addressed when the successful bidder applies for planning permission, including a change of use for the land.

The grocers declined to comment on the site when approached by the Daily Echo.

A Lidl spokeswoman said: "We are always looking for new sites to expand our existing store base but have no confirmed plans for Southampton at this stage."

Aldi said it was "very keen to open stores in Southampton, but is not at a stage where we can comment on specific sites."