Plans to install a new tram service in Alnwick, Northumberland, have been derailed by the town's new supermarket plans.

The Aln Valley Railway Society had designs on part of Alnwick's Grade 2-listed former railway station as a potential future tram stop, to link up with its heritage railway scheme proposed for the outskirts of the market town.

Work is due to begin within a year on the steam line, which would involve laying three miles of track along the disused branch line between Alnwick and Alnmouth.

But the group's plan to use the station, which houses the Barter Books shop, has been put in doubt after German grocery giant Lidl won council backing to build a new store behind the site.

The discount store won approval from planning chiefs on Wednesday, along with a new Sainsbury's store next to the sports centre at Willowburn, on the outskirts of Alnwick.

A plan by rival supermarket firm Tesco was snubbed, though the firm still intends to submit an application for a store at the Willis garage site on South Road.

While shoppers hope both stores are built, Lidl plans to cover with car parking spaces the strip of land ARVS needs for trams at Alnwick Station.

Society spokesman Roger Jermy said: "We are talking about plans which are still a long way off, but it is a disappointing development for us.

"We have the backing of Northumberland County Council to re-lay the track on the old line, and also have Sustrans on board, which is going to clear the track bed.

"This latest setback won't affect those works, because we believe that the heritage line can operate on its own merits.

"What it does do, however, is raise new challenges to overcome in the future."

The scheme put forward by ARVS would see steam trains stopping outside Alnwick at a new station, possibly at Lionheart Enterprise Park on the east side of the A1.

Passengers would complete their journey into town via an ultra-light tramway. That would involve building a lightweight single-track rail bridge over the A1, on the alignment of the original line, and a ground-level crossing at South Road, before Alnwick Station.

Lidl regional development manager Gordon Rafferty said the company sympathised with the society, but added that space on the site was already at a premium.

"We have carefully considered what AVRS has said, but it would involve losing over 30 of our proposed 89 car parking spaces," he said. "The store would be unviable at that level. We also feel that there are safety issues with a light railway line operating in what would be very close proximity to our customers."

Lidl's application for the store, and the Sainsbury's plans, are being considered by the Government Office North East for consideration, before any final approval can be given.