Concerns have been raised of late about the new store which is behind schedule.

The German retailer is still seeking a business partner for the development work - which includes more than 30 apartments above the planned store on the site of the former St Annes Conservative Club.

The recession has hit the new housing industry badly.

Council Leader John Coombes told the Express this week that the authority had been asked by the private consortium behind the development whether the council would be interested in moving in with Aldi.

Coun Coombes said it was one of a number of options for the council under proposals that would lead to the disposal of the existing town hall and the construction of a new civic building that would bring it "closer to the people".

Coun Coombes said: "The council has made it quite clear it is up to looking at alternative schemes and hence going out to get valuations.

"We need to deliver a scheme now which is best value to residents of the borough and their ever changing needs.

"The world is a far different place to this time last year."

He added: "If we can look at developers that have got sites that are no longer suitable for business or residential use we will consider them. It is one of a number of options that have been brought forward by private developers."

"Obviously what the developer now is thinking is there may be no market for apartments now. Could they utilise it for office space or other commercial use, hence the approach to the council."

He said councils nationwide shared facilities and costs such as heating with other private occupants.

He said a new building would have to be "friendly, modern and cheap" for the council to operate, that would be used by the community as well as 9am-5pm, Monday-Friday, for council business.

Coun Coombes said the council would consider disposing if the town hall if a suitable site became available, but that the authority did not want to sell while the market was deflated.

An Aldi spokesman simply confirmed that it was still awaiting a development partner for the site.

The 963 sq metre store is still said to be going ahead, though work on the four storey building and apartments was due to have started by now.

Mike Clarke, property director, told the Express last summer: "We hope to open it some time in the second half of 2010. It is a 12 months' build contract in itself.

Adjoining St Anthony's House, the former JobCentre building, will also be demolished.