The deal, if confirmed, would amalgamate Jefcott St with adjoining land to be used for the supermarket development, Dunedin City Council transportation policy engineer John Visser said.
In return, the developers would give the council a strip of privately owned land between Shand St and Main South Rd, which would become a pedestrian-only lane providing access to the supermarket.
Members of the public have until October 1 to have their say on the proposal, which was publicly notified on September 20.
So far, three submissions had been received in support - two from Green Island businesses and one from the Green Island School - and none in opposition, he said.
Mr Visser said the submissions would form part of a staff report to the next meeting of the infrastructure services committee on October 14, where a final decision on the swap would be made.
The council was also moving to formalise part of Shand St as a road, where it was not legally designated as such, he said.
''We are not consulting on that as well as, from the public's point of view, it is already a public road and we are simply retaining their right to use that as a public road.''
Council staff were also working with the developers on the layout of the site, to ensure access was suitable for large trucks that would supply the supermarket, he said.
''This is a step along the way. It's a long process and once it's all created it has to be maintained and operated and renewed from time to time.''
Consent for the supermarket was granted on August 19 and work to clear the site is under way. Construction of the
1500sq m facility is expected to begin within months and be completed late next year.
Moyle's Supervalue Supermarket on the opposite side of Main South Rd will close and the new supermarket will be branded Moyle's Fresh Choice.