Aberdeenshire Council has had a bid for the former Mill site in Peterhead rejected by Aldi.
The council had made an offer to the supermarket firm in the hope of taking over the derelict site as the base for its new headquarters.
However, at a meeting of Peterhead Community Council on Wednesday, Councillor Stuart Pratt revealed that the local authority offer had been rejected.
He told members that negotiations between Aldi and Aberdeenshire were now over adding that the difference between the council’s valuation of the site and Aldi’s price tag was “colossal”.
Community council secretary, Gordon Farman, said that news of the offer had come as a surprise to members.
“It was a shock to find out that the council had put in a bid for the Aldi site - something we have been discussing for months,” he said.
“I do feel that this should have been made known to the public of Peterhead who have an interest in what’s going on in their town.
“It’s obviously very disappointing that the bid has been rejected as we wuld have liked to have seen the council take over the site.
“You have to ask how long it will be before Aldi gets another offer,” he added.
The five-acre site was put on the market last year after Aldi dropped plans for a major shopping complex.
A spokesman for Aldi said that the firm had been actively marketing the site and there had been a number of inquiries from prospective buyers.
However, he added that they had not yet secured a sale due to the fagility of the commercial market.”
Aberdeeenshire Council, meanwhile, will now press forward with its plans to build a new HQ on the St. Peter Stret site, currently being used as a temporary car park.
The move will bring all services under one roof.