A planning application has been lodged with Telford & Wrekin Council to build the store on a vacant site at the corner of Colliers Way and Rock Road.
It says the store will employ 20 full-time and 20 part-time staff.
There would be parking for 120 cars, as well as disability and cycle spaces, and a new vehicle access from Rock Road.
The plans state that the customer car park will be located to the east of the proposed building and it will benefit from 'natural surveillance' so 'is not likely to be an area that could suffer from anti-social behaviour'.
A statement, submitted with the proposals, says: "The proposed development provides an opportunity to deliver a high quality and well-designed scheme on an undeveloped and underutilised area of land, in a highly sustainable location.
"The development will positively contribute to the local economy in an area identified for economic and residential growth, through investment and employment opportunities for the growing local community.
"The proposed food store will have a gross internal area of 1,900sq m, with a net sales area of 1,256sq m.
"Lidl predominantly sell convenience goods, with just 20 per cent (251sq m) of the net sales area used for the sale of comparison goods.
"The proposed Lidl store will generate up to 40 new full and part-time jobs for local people.
"Typical new roles created will include store manager, deputy manager, check out staff, warehouse staff etc.
"These new jobs can also be expected to deliver a total of £2 million in direct gross value added (GVA) per annum in perpetuity to the local economy, following completion of the store.
"In addition, there will also be temporary economic benefits associated with the construction phase of the development.
"This includes support for direct jobs in construction and jobs in the construction supply chain."
The plans say local councillors and residents have been consulted and 513 individual pieces of feedback were received, of which 63 per cent of respondents were in support of the application, 30 per cent opposed it and seven per cent were unsure.
It is expected that the store will be open between 8am and 10pm Monday to Saturday, and for any six hours between 10am to 5pm on Sundays.
A decision on the plans is expected to be made by Telford & Wrekin Council in the upcoming months.
The supermarket giant is also looking to open new stores in other areas of the county.
Among the towns earmarked for new stores are Shrewsbury, Ludlow and Whitchurch.