Proposals for a new supermarket which could create 400 jobs in Leicestershire have been opposed by city planners.
Asda said the planned store, on a former factory site in Market Street in Coalville, would benefit residents as well as creating employment.
Research by the firm found more than 80% of residents backed the scheme.
But North West Leicestershire District Council planning officers said the plans do not fit with planning rules. They also raised traffic concerns.
They have recommended councillors reject the scheme and the matter will be discussed at a meeting on 7 April.
Tom McGarry, Asda's property communications manager, said he was disappointed: "We think the two reasons that they are bringing forward are on the road network and also on the so-called sequential test - about the development not being close enough to the town centre.
"We think that both reasons are flawed and we also think they fly in the face of public opinion."
Matthew Blain, Deputy Leader of North West Leicestershire District Council, admitted the town needed a new supermarket but they had other issues to consider.
He said: "We accept that it is a store that sits well with the retail need in Coalville and had incredible public support.
"I guess the problem from our point of view as a planning authority is there are certain national policies and planning law that we have to abide by."