Town councillors are this week set to be told that the decision on plans for the redundant 0.22 hectare site in Upper Galdeford is still 'pending'.
The supermarket, built in the 1980s, closed down in February 2017 and the boarded-up building has been left empty ever since.
Plans were lodged in 2019 by Shrewsbury-based Morris and Company to replace the store with a block of apartments with two shops on the ground floor.
Following criticisms the plans were redrawn by Ludlow-based planning agent Trevor Hewett and sent out by Shropshire Council for another round of consultation.
Ludlow Town Council had agreed to the principle of redevelopment of the site and on Wednesday councillors are set to be told that a decision is pending.
The item is one on the agenda for a meeting of the town council's representational committee on Wednesday (October 13).
The redevelopment is set to include 19 mixed tenure apartments, 12 parking spaces, two retail units and the demolition of existing building.