The plans follow the acquisition of a 3.78-acre site close to the Junction 27 Retail Park in Birstall.
The new development would include a 23,412 sq ft Lidl supermarket and a 24,535 sq ft Home Bargains store with garden centre, along with 175 shared car parking spaces.
Ten accessible parking spaces and eight parent and child bays, would be created as part of the development.
If successful, Lidl’s proposals will include an in-store bakery and customer toilets.
Along with the new Home Bargains store, the development would create around 110 new full and part-time jobs for the local economy.
The vacant site, off Bankwood Way, adjacent to the Showcase Cinema, has sat derelict since the business units which occupied the land were demolished after failing to attract long-term occupiers.
A spokesperson for Lidl GB said: “We are really pleased to be working in partnership with C&W Property Developments.
“Following positive community consultation, we are preparing to submit a planning application for a new Lidl store in Birstall.
“A new Lidl in this location will improve local shopping choice and bring a much needed supermarket to the area.
“We look forward to working with Kirklees Council as these proposals progress.”
C&W Property Developments is a joint venture between Caddick Construction and property developer Duncan Waller.
Mr Waller said: “Centre 27 Retail Park is strategically located at the intersection of the M62 and M621 motorway in the Birstall area of Leeds.
“The shopping park currently has representation from some of the UK’s leading retailers.
“Lidl and Home Bargains will further expand and complement the park, strengthening the overall Birstall offer.
“The success of Junction 27 Retail Park is testament to customers seeking choices and value in an accessible, secure and safe retail environment.”
Adrian Dobson, managing director of Caddick Construction, added: “We look forward to transforming this vacant site into a high-quality retail development.”
The new Lidl store forms part of the company’s £1.3bn investment plans across Great Britain in 2021 and 2022.
Its ongoing success shows no signs of slowing, with the latest Kantar Worldpanel results highlighting Lidl’s increase in sales year on year and market share of 6.2 per cent.
Lidl, which is part of the €113.3 bn (£98bn) Schwarz retail group, has over 25,000 employees, over 800 stores and 13 distribution centres in England, Scotland and Wales.