Trust House says there are no plans for the site of the long-awaited Featherston supermarket to be sold, but it is still considering a range of options for development.
Featherston Community Board chairman Garry Thomas said he was told "unofficially" that Trust House planned to landscape and then sell the Fitzherbert St site.
But chief executive Bernard Teahan has denied that and said the conversation was misconstrued.
"There was a Featherston resident who rang our general manager of operations Allan Pollard and asked the question, was that a possibility, and Allan answered it was a possibility in the context of anything is a possibility. But there has been no discussion in this office of that as a possibility."
The main street site was cleared in 2010 to make way for a $7 million supermarket development, but a lengthy resource consent process has led to a rethink of plans, reportedly due to changes in the market.