Asda have unveiled plans to build a 45,000 sq ft supermarket and create 400 jobs in Inverness.
Steve McGarva of Elphinstone and Asda's Barney Harle at the proposed site
It has identified a site at Slackbuie on the city's Southern Distributor Road for a store and petrol station.
A finalised proposal is being put together before the plans are presented to Highland Council for consideration.
Asda have signed a conditional contract with Elphinstone Land Ltd, a joint venture with the Bank of Scotland, to buy the site.
The supermarket chain has been pushing for several years to open a shop in the Highland capital.
Rivals Tesco have three stores in Inverness.
Highland councillor Norrie Donald, who represents Culduthel, said he could not talk specifically about Asda's plans, but said there was support within the local community for a new supermarket.
Barney Harle, Asda's development surveyor, said: "We have looked long and hard at sites for Inverness but this is, in our opinion, the best possible location."