Budget supermarket chain Lidl has bought a defunct pub after KFC gave up on plans to turn the premise into a fast-food restaurant.

Last year KFC withdrew planning applications for the Organ and Dragon in London Road, Ewell, to the delight of residents who had voiced fierce opposition.

A Lidl spokeswoman today said: “I can confirm that we have purchased this site as part of our expansion plan for London and South East England.

“The view is to redevelop the site however, as we are in the very early stages, we are unable to confirm what these plans will entail.”

Last year the Government’s planning inspectorate upheld councillors’ decision to reject planning permission for a KFC on the grounds that it would adversely impact highway safety and efficiency.

A second planning application for the same project, which aimed to address highway safety concerns, was also rejected by the planning committee at Epsom Council.

Residents had presented a 1,000-signature petition to the council opposing the plans.

The Kingfisher pub, in Ruxley Lane, is being turned into a Tesco Express after planning permission was granted for the construction of a canopy in October.

A Tesco spokesperson said: “We're really pleased to be getting closer to opening our Express and to welcoming our 17 new colleagues.

"The new store is due to open on 18 February. We look forward to serving local customers then.”

The Campaign for Real Ale (CAMRA) has been lobbying to get the Government to close planning law loopholes that allow supermarket chains to convert pubs without the need for planning permission.

CAMRA research shows that more than 200 pubs across Britain were converted into supermarket convenience stores between January 2010 and November 2012.