The historical hotel in Clayton-le-Woods, which was a popular venues for weddings and parties in its heyday, will be torn down to make way for the German discount chain.
Forty retirement apartments from housebuilder McCarthy and Stone are also part of the development at the site on the A6 Preston Road.
Lidl UK’s regional head of property, Stuart Jardine, said: “We could not be more delighted to have received planning permission, and look forward to getting started on construction.
"I’d like to take this opportunity to thank the local community for their continued support, and very much look forward to opening our doors and offering our fresh, quality, great value products in the not too distant future.”
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Planners at Chorley Council paved the way for the application, which also includes car parking, to go ahead at a development meeting on Tuesday, January 16.
Welcoming the retirement homes borough councillor Eric Bell, who represents Clayton-le-Woods, said: “There’s a big demand for a retirement home in the area, it will be an asset to the village.
“Now the old Pines will be knocked down and we can watch this space and see how it develops.”
Residents living off the A6, a busy road between Bamber Bridge and Chorley, had previously voiced their concerns about the impact on traffic but Highways had not raised any objections to the plans.