Sainsbury's today announced that the construction of the new superstore in Raglan Street, in the Westside area of the city centre, will start on October 14.
Work to build the new store is expected to be completed by summer next year.
As well as a new supermarket, the redevelopment will see a new petrol station, 700 space car park, pedestrian links across the ring road and the planting of new trees and shrubbery.
The news follows Wolverhampton City Council's own announcement this week that it is to invest £10.6 million in creating new retail and Grade A office space at the Interchange.
Further developments in the city centre include the University of Wolverhampton embarking on a multi million programme of investment in consolidating its Campus
The council is also about to start on site with the first phase of a £5 million transport and movement improvement programme.
Wolverhampton has also been boosted by Jaguar Land Rover investing £550 million in a new engine plant in the north of the city, with huge supply chain opportunities being generated.
Councillor Peter Bilson, Wolverhampton City Council's Cabinet Member for Economic Regeneration and Prosperity, said: "This is excellent news and a major boost for our overall plans for the city centre.
"The new store represents a significant investment by Sainsbury's and will see the creation of new jobs. It will also be a shot in the arm for the city centre economy.
"While the current economic climate is tough, we remain committed to attracting further inward investment to help us regenerate Wolverhampton and increase prosperity across the city.
"Sainsbury's commitment is another step that will assist us in achieving this aim."
- released: Thursday 26 September, 2013