Councillors have been recommended to pass plans for a new 24-hour Tesco supermarket at Risca’s former foundry site off Newport Road.
Caerphilly County Borough Council’s planning committee will defer a final decision on the plans to allow a section 106 planning gain agreement to be drawn up.
Such an agreement ties the supermarket chain to carry out certain objectives.
In this instance, for planning permission to be granted, the firm has to promise to build a footbridge linking the town centre with the site and a riverside walk.
The firm will also have to open a new Tesco Express store in the old Palace Cinema in Tredegar Street as part of the planning deal.
A report before councillors on Wednesday night outlines the benefits of the plan, such as 500 new full and part-time jobs but also highlights concerns from residents about local traders possibly losing out.
Councillor Ron Davies, cabinet member for regeneration, said,: “Officers of the council have worked extremely hard to bring about the regeneration of Risca and projects like this can bring about substantial community benefits.
“The planning committee will look carefully at this application and give full consideration to the proposals before any decision is made.”
The plans for the 7.7 hectare site include a store area of 1.02 hectares and 761 car parking spaces.
If councillors eventually agree to the plans, which have been objected to by nearby supermarket Morissons, they will have to be referred to the Welsh Assembly Government for final approval.