Work on the Island’s Morrisons store will finally start next month after a rival developer withdrew its legal challenge against the scheme.

LXB Retail Properties, which is behind the £25m transformation of Neats Court, has said they hope to get on site by mid-September.

It comes after Citygrove, which lodged a challenge in April to overturn the Queenborough development, withdrew its legal bid.

They had hoped to build a Sainsbury’s store on the former HBC Engineering site in Halfway, but the chain pulled out in March.

The legal challenge centred around Swale council’s planning procedures, as Citygrove felt both developments should have been considered by councillors at the same time.

Chairman of Citygrove Toby Baines said they will now be looking at alternative types of development on the Power Station Road site and that the primary focus is likely to be housing.

He said: “We assessed it and realised it’s best for the Island that we don’t proceed [with the judicial review].

“Clearly we would have preferred the food store went on our site, but unfortunately we have lost.

“It’s back to the drawing board for us to consider all available options. We wish the Island well and hope it all goes well with Morrisons.”

Residents Paula Garrett and Chris Packman launched a petition against Citygrove’s legal challenge and collected around 1,500 signatures.

“It’s brilliant news and we are over the moon – we hoped that good sense would prevail,” she said.

Giles Haywood from LXB said: “We are delighted and are now looking forward to starting on site.

“We would like to thank local people for their support and bearing with us over the past few months.”

MP Gordon Henderson said it’s great news and that once work starts on site it will be a big boost for morale.

DIY giant B&Q, footwear retailer Brantano and home furnishings shop B&M Stores have all shown an interest in Neats Court.

These would be in addition to a petrol station, KFC drive-through and family pub.

The development could create up to 600 jobs and will take about eight months to build – meaning it could be open by May next year.