Despite the news that the future of Iceland’s St Matthew’s Street store looks bleak, the company is hoping to open another shop in Ipswich – on the Rosehill Centre off Felixstowe Road.

The centre, which currently includes and Aldi and a Co-op supermarket is set for major changes if they get the final co-ahead from borough planners next week.

A new store for Aldi is set to be built on the opposite side of the Co-op, while the existing Aldi store is to be sub-divided into two shop units.

This application has already been approved by planners – although they imposed a planning condition that the two small shops should both be for non-food goods only.

Now the East of England Co-op, which owns the freehold of the site, has applied for this restriction to be lifted on one of the two new units – and planners have been told that Iceland is the company that wants to move in.

The Rosehill Centre was built on the site of the former Co-op Dairy and opened 10 years ago.The Co-op and Aldi had neighbouring units, after both retailers found that they shared customers after the first Aldi in Ipswich opened at a Meredith Road on the Whitton estate.

The new Aldi store will be similar size to the company’s existing shop on the site, and the amount of parking will increase as some other buildings on the site will be demolished to make way for the redevelopment.

Planning officials are recommending that councillors agree to the relax the conditions to allow Iceland to open at the site.

A spokeswoman for the East of England Co-op said they did not want comment on the application until after the meeting next week.