The 90,000 sq ft superstore plan also includes building an 810-space car park and petrol station as well as 45 homes and 85 apartments with gardens and car parking spaces.
The whole project at Raglan Street in Graiseley is expected to carry a price tag of over £40m.
Construction will mark the end of more than a decade of wrangles over the site with Tesco, which owned 10% of the land and had its own ambitions to build.
Tesco agreed to sell its land stake at Raglan Street to Sainsbury’s on condition it got planning permission to build a new superstore at the Royal Hospital.
Both schemes got the final go-ahead in December when the Secretary of State decided not to call them in.
Tesco will create a new £60m supermarket on the former Royal Hospital site on the edge of All Saints. The site will include offices, retail and a museum celebrating the former hospital’s heritage.
Tesco has plans to build a £60m supermarket on the former Royal Hospital site on the edge of All Saints. The site will include offices, retail and a museum celebrating the former hospital’s heritage.