Aberdeenshire Council has said it remains hopeful that a new sports and community facility in Banff will still go ahead.
The announcement comes after Tesco confirmed it was to pull out of plans to build a new supermarket in the town.
On Thursday, the supermarket chain said it would no longer be proceeding with the Banff development, which was part of a wider agreement to also deliver leisure and community facilities in the area. However, a statement from Aberdeenshire Council has said that there is still hope the facilities will be delivered, as Tesco have indicated they will fulfil the contract.
Colin Mackenzie, Aberdeenshire Council's Chief Executive, said: "Today's news will come as a massive disappointment to the people of Banff and Macduff who welcomed a new store for the town.
"Great progress has been made over the last two years on the community consultation and necessary legal agreements to allow us to proceed with the development of the store."
He added: "Tesco have acknowledged that they understand and appreciate the importance of the site to the local community and the Council and of their contractual obligations. They are indicating that they are keen to work with us to find a satisfactory way forward.
"It is still our intention to secure the very best outcome for local residents and we remain supportive of the need to improve leisure and community facilities in the Banff and Macduff area."
(JP/IT)
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