Budget German supermarket chain Lidl could be in the running to take over an empty site in Wallingford.

South Oxfordshire District Council says the firm, which has shops in Cowley and Reading, is "one option" for the former Waitrose site, which has stood vacant for almost three years.

Lidl acquisitions manager Stephen McDonald declined to comment on the Wallingford site, saying: "We are looking at a number of opportunities, and a number of sites across Oxfordshire."

Wallingford residents said they would like to see more diversity in the town's shopping.

John Allen, 65, of Castle Lane, said: "It is a fantastic idea. That site has been unoccupied for a very long time now and I am surprised that Waitrose is continuing to pay for the rent.

"Everybody has said there is an absence of a competitor, particularly in these days when everybody is watching their money much more carefully.

"A low price competitor to Waitrose would be a very good idea.

"When Waitrose increased in size, a number of small independent businesses were swallowed up, including a butcher and greengrocer.

"If you are trying to save money then by the time you have got to your car to drive to Didcot to visit Tesco, you have spent the money you would have saved."

In 2005, Waitrose moved from its St Martin's Street site to larger premises further up the road.

Richard Neale, 60, of St Leonard's Lane, said: "In the present economic circumstances, this might be the best one can expect.

"For somebody who wants basic food and certainly in the current circumstances of economy and the way it seems to be going, Lidl might be very popular."

KP Stationers, which will move next door to the site next month, also welcomed the idea.

Assistant manager Amanda Farrimond said: "I would think it would be a good idea. Waitrose need competition and it would bring more people into the town."

Suzanne Malcolm, the district council's economic development officer, said: "We will be speaking to a lot of players like Lidl, but also other retailers to see if they will be interested in the site. Lidl is one option, but there are also others we are looking at."

Earlier this month, cut-price rival German chain Aldi won its battle to build a supermarket in Botley Road, Oxford, after a planning inspector ruled in its favour.