Tesco is selling the old Toby Jug site in Tolworth after more than a decade of attempts to gain planning permission for massive redevelopment.
The Every Little Hurts campaign had run under the tagline "Save Tolworth, Stop Tesco".
Several well-placed sources confirmed to the Surrey Comet that the sale was going ahead.
The retail giant had planned to build some 700 homes on the site, including a 21-storey tower block.
The development would also have seen junction improvements on the A3 roundabout and an extension of the 281 bus route.
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Tesco finally dumps Tolworth supermarket plans in favour of housing
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A new Tolworth Tower? 23-storey apartment block planned by Tesco for old Toby Jug site by A3
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Revealed: Tesco's plans for 705 homes, doctor's surgery and bus interchange in Tolworth
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Fewer than 100 affordable or shared homes in 705-unit Tesco Tolworth plans
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