The proposal will see six new shops and a new drive through coffee shop built, as well as 450 new parking spaces.
One of the new units will be designed for a “bulky goods” store, while another will be a food outlet.
The remaining four smaller shops will be used for retail.
A 58 room retirement home will also be built as part of the development and a new bowling club to replace the existing Bristol Bowls Club.
Tesco has also agreed to provide £150,000 in contributions for affordable housing off-site.
The site was bought by Tesco but the multi-million pound plans for a new store there were shelved in January 2015 after the company had to drastically reassess its expansion plans.
Council officers said the new plan will help to bring a retail park close to the town centre and will include a footpath leading to the high street.
Plans for the Boston Road site show several retail units and a retirement home.
Councillor Ian Carrington said the site is important to help regenerate Sleaford.
“It will play a vital role in revitalising the town,” he said.
“It’s not only important for Sleaford, but the whole of the district and we want to see it prosper.
“Every market town cannot stand still, they must move forward.”
Meanwhile, Councillor Katie Cook said the development was “much needed” for the area.
She said: “The town really does need something like this to regenerate it.”
But concern was raised about an increase in lorries and heavy goods vehicles using the town centre as a route to the park.
Councillors approved the development, but asked for a traffic management plan to be written up to address the concern over delivery vehicles.
SUBSCRIBE TO LOCAL DEMOCRACY WEEKLY, our exclusive email newsletter with highlights from our coverage every week and insights and analysis from our local democracy reporters.
The Lincolnite welcomes your views. All comments are reactively-moderated and must obey the house rules. Please stay on topic and be respectful of other readers.
Exciting news for MyLocal app users and The Lincolnite readers! Our latest update is now available to download from your app store and comes packed with the best local news experience you can enjoy.
Revamped News Feed: Enjoy faster loading times and smoother scrolling that make catching up on local news a breeze.
New Play Video Feed: Dive into a dynamic video feed that brings local stories to life in a whole new way.
Enhanced In-App Browser: Access external links quickly and efficiently, right from the app, without any distractions.
Update your MyLocal app from your app store (version 2.73) now and start enjoying these great new features today!
P.S.: Start your MyLocal membership today to support MyLocal and The Lincolnite deliver you a better local news experience and honest journalism from across Lincolnshire.
P.P.S.: We have some huge things in the pipeline, stay tuned!
Exciting news for MyLocal app users and The Lincolnite readers! Our latest update is now available to download from your app store and comes packed with the best local news experience you can enjoy.
Revamped News Feed: Enjoy faster loading times and smoother scrolling that make catching up on local news a breeze.
New Play Video Feed: Dive into a dynamic video feed that brings local stories to life in a whole new way.
Enhanced In-App Browser: Access external links quickly and efficiently, right from the app, without any distractions.
Update your MyLocal app from your app store (version 2.73) now and start enjoying these great new features today!
P.S.: Start your MyLocal membership today to support MyLocal and The Lincolnite deliver you a better local news experience and honest journalism from across Lincolnshire.
P.P.S.: We have some huge things in the pipeline, stay tuned!