Isle of Wight Council has netted £17.75m from the sale of land to supermarket giant Asda.
The site, close to St George’s football stadium in Newport, will be used for a new store with work expected to begin next year.
The council said the money would give it the ‘opportunity to seek capital investments with the potential to generate revenue income, which will benefit the island in the longer term’.
Councillor Shirley Smart, executive member for regeneration, economy and public transport, said: ‘I would like to take this opportunity to welcome Asda to the island.
'Their new presence will provide additional value to the island’s retail offer, as well as creating new jobs for islanders. I look forward to working with them and our wider community throughout the creation of the new store, leading up to its launch in 2017.’