ASDA could bring 400 new jobs to Newport in a £25million investment.

It has applied for planning permission to build a new superstore on the Cattle Market site in Pill.

Today it was revealed a sale was agreed earlier this year between Newport Cattle Market Company and Asda but it will only be finalised if planning permission is awarded.

The development could see a 40,000 sq ft store built, with a 390-space car park.

A listed building on the site will not be destroyed, although it is not yet known what will happen to it.

A spokesman for Asda, which already has a store in Duffryn, said the development is "an important part of regeneration for Newport".

The sale comes three years after a planning application from another supermarket on the site was turned down by the council, and could herald the end of years of uncertainty over the site.

Peter Hales, an agent for the vendors, said the site was being sold because it was not commercially viable to keep it as a cattle market.

The news was met with a mixed reaction from local councillors and business leaders.

Ron Jones, a Pill councillor, said: "This provides a massive impetus to the redevelopment of the Commercial Road area. But it will create more traffic, and what damage might it do to the rest of the shops on Commercial Road?"

The cattle market has served the farmers of the area since 1844, and traders say news of its imminent demise is a "great shame".

Rob Edwards, from Glamorgan Farm Supplies, said: "The market's been here for such a long time, and there won't be business for us when the market leaves. It's a great shame it has to close.

"Whatever happens to this site, it can only improve the area because it will help prevent crime and vandalism. But it's very important the market is relocated."

Neil Waters, of Bernard's, an agricultural engineering firm, said: "The market's been around for a long time and is a piece of Newport history.

"But I suppose this is progress and you've got to move on."

Trevor Roberts, president of the Chamber of Commerce in Newport, cautiously welcomed the plans.

He said: "We welcome all new jobs coming into the area, but we need to be careful it doesn't draw shoppers away from the city centre.

"I'm sure the local authority will take that into account.

"It needs to complement the city centre development, not conflict with it."

But the Federation of Small Businesses in Wales said there would be a "devastating" impact on individual businesses in Newport.

A spokesman said: "Newport doesn't need any more supermarkets. This could potentially be really devastating. Consumers need to think about whether they want diversity and choice or more supermarkets."