The supermarket chain will build a new outlet on the former Ultimate Outdoors site, bordering The Boulevard and Merry Hill.
The site, which has been vacant since March last year, has previously been home to children's retailer, Kiddicare and the US retailed, Best Buy.
The new store will create around 40 full and part time jobs. A spokesperson for Lidl said:
“We look forward to investing in Dudley and creating more job opportunities for the local area. We would like to take this opportunity to thank everyone for their support so far.”
The retailer hasn’t confirmed an opening date but says they look forward to starting construction in due course.
Lidl has two other nearby stores on Halesowen Road and Lower High Street, Cradley Heath.
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