Supermarket giant Tesco says it has not given up on the fight to build a store at Dawlish.

Tesco has been embroiled in a battle with Sainsbury's for more than three years over permission to build a store in the seaside town, but pulled out of a public inquiry into its appeal after being refused planning permission, leading to suggestions it had withdrawn from the race.

A Tesco spokesman said the inquiry was on hold and that Tesco would decide whether to go ahead with the appeal once it was known if Sainsbury's had been granted planning permission.