The new Lidl on Deacon Rod replacing the Carlton Centre store is set to open on March 1.
The sales area of the new supermarket is increasing to 1,690m² compared to the existing 1,200m².
The new store will also have a bakery, customer toilets, baby changing and ample parking for cars and bicycles.
Lidl says up to 20 new jobs will be created in the move.
The supermarket will have special non-food offers in the first week of trading.
Lidl UK’s Regional Head of Property Colin Rimmer said: “We would like to thank all those who have played a part in this relocation, which we are sure will be a great addition to our other Lincoln stores.
“We are pleased to be able to create even more jobs and investment opportunities in the area, and can’t wait to start serving our multi-award winning products to the local community.”
Tim Bradford, Managing Director of Banks Long & Co, said: “We have worked closely with Lidl to facilitate their relocation onto land opposite the Carlton Centre as they had outgrown their existing unit.
“Simultaneously with agreeing the relocation, we arranged a letting of the whole existing Lidl Carlton Centre unit to another national retailer who will be taking occupation and fitting out over the next few months.”