It comes after Tesco, which has experienced falling sales over the past two years, revealed it will be closing 43 of its stores across the UK- leading to significant job losses.
The existing Worksop Tesco, which is located on Gateford Road, will remain open.
Dave Lewis, chief executive officer at Tesco, said: “Our business has fallen significantly short of where we would have wanted it to be.”
“As a result, the financial resources we have available for investment are severely constrained and we have had to review all current and future investment decisions.”
“It was a heavy heart that I am announcing that we are unable to proceed with the 49 new store developments across the country, including our planned store in Worksop.”
“I know the news will be a real disappointment to many people in the Worksop community and we are extremely grateful for the support we received for our plans.”
Coun Simon Greaves, leader of Bassetlaw Council, said the Council would be working closely with Tesco to establish plans for the future of the Carlton Road site, on which work has already begun.
He added: “Even though financial difficulties have led to Tesco pulling out of the new development, I am very pleased that there has been no negative impact on the Gateford Road store and that there have been no job losses as a result.”
“We recognise work has commenced on the site and the last thing people would want is for the site to lie dormant. We as an authority will work with Tesco to find a solution and hope that the people of Worksop will take this opportunity to express their views on plans for the Carlton Road site.”