Woolworths has lodged plans to build a new $30 million supermarket on busy Lambton Road at Broadmeadow.
The proposed supermarket is next to Hunter School of the Performing Arts and includes a BWS bottle shop, basement car park and cafe.
Access to the site would be via Cameron Street, where new traffic lights would be installed.
The company is seeking opening hours from 6am to midnight.
The grocery giant's development company, Fabcot, bought a series of buildings in Lambton Road in 2020, including the former Fraser Motorcycles showroom.
Property records indicate Fabcot paid $9.4 million for five adjoining lots in August 2020 and $3.15 million for two more lots later that year.
The land amounts to about 6400 square metres.
Woolworths has supermarkets at Charlestown, Kotara, Cardiff, Jesmond, Warabrook, Mayfield, Toronto, Belmont, Cameron Park, Glendale, Mount Hutton, Newcastle West and Newcastle.
"The applicant has identified a strong current demand for a new supermarket within Broadmeadow through detailed social, economic and commercial analysis," the development application says.
The state government and City of Newcastle have earmarked Broadmeadow for large-scale housing redevelopment surrounding the proposed Hunter Park sports, leisure and residential development.
Lambton Road is expected to form part of a proposed "mass transport corridor" the government plans to make public before July.
Fabcot looked at land at the nearby Nineways intersection, closer to Broadmeadow Station, but could not find suitable lots with adequate road access.
The development application shows the supermarket will have 159 basement parking spaces and 37 above ground.
It estimates the supermarket will generate 101 jobs during construction and 247 when open.
A Woolworths spokesperson said the plans would "contribute positively to Broadmeadow and the greater Hunter region".
