Dundee City Council rejected the retailer’s proposal for the site at Tom Johnston Road at West Pitkerro Industrial Estate by 17 votes to six because the three-hectare site had been reserved for industrial rather than retail use.

Concerns were also raised that the store would drive customers away from shops in the heart of nearby Broughty Ferry.

But the Scottish Government reporter said there are no preferable sites for the £4.25 million development, which will create 35 full-time jobs.

A report said: “The council has suggested that shopping trips made to the proposed store may include some that would be diverted from the Broughty Ferry centre.

“Because that centre contains a range of retail outlets of different types offering a wide range of goods, any diversion of trips to the proposed store would, the council says, reduce the extent to which shoppers may make purchases in other shops in the centre.

“I accept that shoppers visiting Broughty Ferry centre might make purchases in more than one shop, and that if they instead visited the proposed retail store at the appeal site [Aldi] that opportunity would not be available to them as part of the same trip.

“However, the council has not presented any evidence to enable me to quantify the effect of any diminution in trade as a result of a reduction in linked trips.

“Any reduction in linked trip trade would not be such as to cause harm to the vitality or viability of the Broughty Ferry centre overall.

“I find that the proposed development would not have any significant adverse effect on the vitality or viability of existing centres. I also find that no site is available for the proposed development within a sequentially preferable location, and that the proposed retail store would address a deficiency in provision locally.”

Councillors will be notified of the decision at a meeting of the planning committee on Monday.