Discount supermarket Lidl has lost its appeal to build a store in the city three years after plans were first submitted.

The firm first entered plans for the store on Bishop Bridge Road in 2014, fiercely opposed by rival Aldi, but it was rejected by Norwich City Council last year.

An appeal was sent to the Planning Inspectorate by the German retailer but the inspector upheld the council's decision as 'the proposal would not be a sustainable development'.

The land, occupied by the Value Car Centre, had been earmarked for 50 homes. But when submitting fresh plans for the 26,296sq ft store on appeal, Lidl highlighted that delivery of the new homes would not happen until 2023.

The supermarket also said it had received 700 letters of support from the local community.

But inspector Nick Palmer agreed with the council's refusal. He said the development would benefit the local community with the new jobs and a creation of a new shopping facility, but said the proposal would compromise the ability of the council to meet its housing requirement.

'The adverse implications for housing provision weigh significantly against the social and economic dimensions,' he said.

'The loss of allocated housing land would be likely to increase pressure for release of green field land on the edge of the urban area with consequent implications for the environmental dimension.'

Mr Palmer added he had taken into account 'the support that had been expressed for the proposal by local residents' but dismissed the appeal.

Aldi was one of the main objectors to the store.

It had claimed Lidl's estimates over the new store's impact on other shops, including Aldi's own Plumstead Road store, were out of date.

Aldi had also objected on highways grounds although highways officers had not.

A Lidl spokesman said: 'We were naturally disappointed with the outcome, having received considerable support from the local community.

'We remain firm in our belief that the area would benefit from a Lidl supermarket - which would provide customers with an additional choice of high quality products at unbeatable prices, along with 40 new jobs - and are now in the process of reviewing our options.'