The application for the site on Anstey Road has been submitted to South Gloucestershire council for consideration - more than two years after a similar application was refused.
Tesco has owned the site for nearly a decade and previous applications for planning permission have stirred up strong feelings in the community.
At the time of the last application in 2009 pressure group 'Say No to Tesco' claimed a new store would lead to traffic congestion, noise and light pollution and take business away from the high street.
However a spokeswoman for Tesco told This is Bristol that the plans are fundamentally different to the ones submitted back in 2009.
She said after extensive consultation with local businesses, community leaders and the council the new plan will include existing industrial units on the site safeguarding 40 jobs at Sealtech.
They will also re-develop and market other industrial units on the site.
The spokeswoman said in this way they are attracting new business to the area, safeguarding existing local jobs as well as creating 160 new ones in the store.
She went on to add that an independent retail report commissioned by South Gloucestershire council concluded there was a demand for a store in Hanham and, with free car parking for more than 200 cars, she believes the development would encourage people to use both the store and the high street.
Nicola Little, from Hanham Parish Council, said: "The application has only just gone in and we have not had a chance to look at it so we cannot comment. We're holding a public meeting on Wednesday 6th June at Hanham Community Centre and a representative from Tesco will be there. We will have a chance to look at the plans and listen to what Tesco have to say."
Local business owners Sarah Baccar and her husband Imed run a beauty salon and café on the High Street. Sarah said: "I'm happy about the application. I think it will bring more people into Hanham and that will have a positive impact on our businesses. As long as there is plenty of parking it should bring extra potential customers to the town."
In the past the plans have divided opinions in the town and feelings still run high. One businesswoman, who asked not to be named, said: "Personally I think it's a good thing for the residents, not so much for the businesses but to be honest only the Co-op is likely to suffer. It's been a very controversial topic and people in the town feel very strongly about it one way or another."
There will be a public meeting at Hanham Community Centre on Wednesday, June 6 at 7.30pm where the plans will be on show and representatives from Tesco, planning officials and the Parish council will be on hand.
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