German supermarket giant Kaufland has announced plans to build a massive store in east Warrnambool on a block of vacant land.

Its application for the project will be considered by Planning Panels Victoria, which independently assesses planning proposals and major projects by considering submissions, conducting hearings and preparing reports.

In most cases these decisions are made by local councils.

All approvals will be exhibited for public comment and be subject to public hearings which will help inform the advisory panel's report to the Planning Minister for the supermarket.

The site that has been submitted to the advisory panel is 69-83 Raglan Parade, Warrnambool.

It is understood the supermarket giant is already engaging with Victorian suppliers, so it can source local products where possible.

The new store will provide opportunities for complementary independent retailers such as cafes within the shopping complex.

The state government said Kaufland's investment would benefit the construction industry, with "stores set to create hundreds of opportunities for local construction businesses, workers and apprentices".

Nine stores including Warrnambool are seeking approval, and if this goes ahead its investment would top $500 million and create up to 2400 jobs across the state.

Mayor Tony Herbert and the state government were contacted for comment about why the council was bypassed but did not respond.