The Netto supermarket uphill is set to be revamped as Asda this autumn.
The move comes after the supermarket giant paid £778m to take over the Netto discount grocery chain in May 2010.
The Lincoln store in Nettleham Fields is one of the 193 stores Asda bought, the equivalent of £4 million from the deal.
Asda intends to open new, smaller stores in order to compete with high street and convenience stores opened by Tesco and Sainsbury’s recently.
Also, by transforming the uphill Lincoln Netto into an Asda, the Walmart-owned brand would technically open its first food store in Lincoln.
There already is an Asda in North Hykeham, and the chain has an Asda Living store with clothes and electronics in the Valentine Retail Park on Tritton Road.
The Nettleham Fields Asda will reportedly sell around 10,000 products and increase staff from currently 13 at Netto to 24.
Asda is the latest supermarket chain to make forays into Lincoln.
There are already five Tesco stores in Lincoln, two Lidl, two Iceland, a Morrisons, a Waitrose, a Sainsbury’s and a Marks & Spencer’s.