A new supermarket at Ashton Gate has emerged as a key link in the funding of Bristol City FC's plans for a new 30,000-seater stadium.

The Bristol Evening Post can reveal Tesco is keen to buy the ground if plans for a new stadium at Ashton Vale go ahead.

But sources within the city council say that some officials and politicians are against a new store because they are worried about the impact on local shops and traders.

It was originally expected that the Ashton Gate site would be used to build new homes.

But the recession means that the amount of money generated by a homes scheme would not be enough to help fund a new stadium for the club.

Building homes at the ground would generate up to £5 million but selling the site to a supermarket chain could fetch an estimated £20m.

Former Lord Mayor Peter Abraham has warned that the city council must not drag its heels over making sure the new stadium is built.

He said: "The land value has to be maximised in order to get the money and funding for the new ground.

"It's pretty clear that a superstore, which would be in an ideal location, would provide the honeypot to make sure the new stadium happens.

"A superstore would help to regenerate the area, some aspects of which are looking very tired."

The football club is keen to go ahead with its new stadium plans as soon as possible – not least because a new home for the Robins could also provide a venue for World Cup games if the Football Association wins its bid to host the tournament in England in 2018.

It has been estimated by the city councilthat hosting World Cup games would generate up to £100 million for the local economy.

A purpose-built stadium would also help to give a lift to the city's prestige on the national and international stage.

In a statement issued last night, a club spokesman said: "Bristol City Football Club can confirm it is in discussions with Tesco Stores over the future of Ashton Gate. The aim is to ensure the club achieves maximum value for the site, whilst also boosting the economic well-being of South Bristol.

"All the monies received from the sale of Ashton Gate will go towards the development of the new regional stadium, which will be the home of Bristol City Football Club. Both Ashton Gate and Ashton Vale will be one of the biggest developments seen in Bristol for many years.

"The new stadium will give the region a huge economic boost as well as enabling Bristol to bid to be a host city for the 2018 World Cup."

John Savage, chairman of Business West, said: "Of course, I think a new stadium would be a fantastic piece of the jigsaw in Bristol.

"But I am also conscious of the sensitivities of building a supermarket on this site."

Another planning issue is the close proximity of the Sainsbury's store in Winterstoke Road.

Under planning policies, the city council must take into account the nearness of other supermarkets.

The area is also served by Asda in East Street, Aldi in North Street and Lidl stores in Sheene Road and Philip Street, off East Street.

The city council objected to Sainsbury's building a store on the former UBM site but the supermarket chain won permission after a public inquiry.

Sainsbury's also won the day when the company was allowed to turn its former Cargo Club opposite the ITV West studios into a supermarket, despite an outcry from traders and residents in Sandy Park.

A public inquiry could be held if planning permission for a new Tesco at Ashton Gate was turned down.

But such a decision could ruin any chances of putting Bristol on the football map by hosting World Cup games. The FA is keen to support Bristol FC's plans for a new ground because in order to win the 2018 bid, it must demonstrate that games can be held in all regions of the country and not concentrated in London and Manchester.

A new stadium in Bristol would offer the only chance of a decent venue in the whole of the South West.

The leaders of the three main parties on the city council reserved judgement on the prospect of a new supermarket when approached by the Post yesterday.

Council leader Barbara Janke said: "The Liberal Democrat administration welcomes the prospect for a new football stadium, particularly one that can be used for World Cup matches.

"Any planning application, when it is received, will have to be judged on its merits in the light of the council's planning policies."

Labour leader Helen Holland said: "We are hugely supportive of the club's ambitious plans for a new stadium and for Bristol to be part of the World Cup bid.

"We want it to happen and what happens on the existing Ashton Gate site is fundamental to the development of the new stadium.

"But the planning process must be adhered to and residents need to be consulted and the impact on other retailers assessed."

Tory leader Councillor Richard Eddy said: "The idea of a new stadium is tremendously exciting and I expect to see the council working with the club to realise their ambitions.

"But any development options for the existing ground must accord with the council's planning and retail policies and not have a detrimental impact on the community."

Ashton Gate, now a 21,500-seat stadium, became the permanent home of Bristol City in 1904.

In the past, plans were considered for expansion work to be carried out at Ashton Gate. There were also proposals to build a new 36,000-seat stadium at Hengrove Park. This was turned down in a local referendum in December 2000.

In 2002, the council was looking at possible sites for a new 40,000-seat stadium which would house both City, Rovers and Bristol Rugby, but these plans were scrapped and it is widely believed that a joint stadium would not have been welcomed by the majority of supporters from all clubs.

Ashton Gate's current capacity is an average size for Championship grounds, however in November 2007 the club announced plans to relocate to a new 30,000 capacity stadium in Ashton Vale with the option of expanding to 42,000 should it be considered for World Cup football in 2018.

As well as football, Ashton Gate has played host to many big music concerts in recent years, including those of Rod Stewart, Bryan Adams, Elton John, Neil Diamond, The Who, Ronan Keating, Meat Loaf and Bon Jovi.

Bristol City came within a whisker of winning promotion to the Premiership almost exactly a year ago but were beaten by Hull City in a play-off final at Wembley.

This year, the club finished tenth in the Coca-Cola Championship.

Council spokesman Simon Caplan said: "We are looking forward to receiving the club's planning application and its proposals for a new stadium and any associated development.

"However, as readers will appreciate, planning is a legal process and it would be inappropriate for us to comment on what might be contained in any application at this stage.

"We are keen not to prejudge any discussion or decision about a detailed scheme at this time.

"When any applications are received we will give them our careful consideration and work positively with the club to achieve a development that is appropriate and brings social, economic and environmental benefits to the city."

No one from Tesco was available for comment.