Aldi has won a tussle with rival Tesco for the chance to open in Silsden.
Both supermarket chains had been seeking to open stores on sites in Keighley Road.
Planners on Thursday refused Tesco the chance to take the matter to a head-to-head battle then approved the plan for Aldi to build a food store on land at Habbeger House, Keighley Road.
The meeting heard the Aldi plan had won widespread support in the town, as well as the backing of two ward councillors.
The approved planning application also included an expansion of the conveyor-belt manufacturing factory Habasit, which would secure 70 to 80 jobs.
Agents for the Tesco scheme, who submitted their application last Monday, told the regulatory and appeals committee they believed both projects should be considered at the same time and asked the council to delay a decision on the Aldi bid.
The request was refused by the committee.
Committee member Coun Roger L’Amie (Cons, Baildon) said the applicants behind the Aldi plan had a right to have their plan considered in a reasonable time.
He said: “It would carry more weight if the two applications arrived together.
“If somebody has had three or four months to formalise an application, then there is a penalty for being late.”
Coun Shabir Hussain (Lab, Manningham) said 218 postcards handed in by people in support of the Aldi scheme had been very persuasive.
He said: “The people of Silsden have spoken for themselves. These 218 cards more or less said everything.”
Coun Doreen Lee (Lab, Keighley East) said an Aldi would be valued by elderly residents, some of whom found the Co-op too expensive.
After the meeting, Aldi property director Mike Clarke said he was very pleased with the result.
He said: “We are very grateful for the significant support from residents and businesses and we look forward to starting the development in the near future.”
The company aims to have the store open by early 2015.