This follows discussions with Liverpool City Council (LCC) regarding the future of the site.
LCC has a development agreement with St Modwen to bring forward a large mixed-use regeneration project in the Great Homer Street area known as 'Project Jennifer'.
There were concerns that further legal challenges from Tesco could delay this investment, but these challenges have now been avoided.
Instead, Tesco will seek an agreement with the council's development partners to sell their land interest.
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Councillor Joe Anderson, Leader of Liverpool City Council said: "Tesco invested in Great Homer Street at a time when many others wouldn't, continued challenges could have harmed the area so I am delighted that they are now looking to sell their investment.
"I met senior Tesco representatives last week and they indicated to me that their door is now open and I hope our development partners now seize this opportunity to buy the land and bring forward the Project Jennifer vision as soon as possible.
"Tesco is one of Liverpool's largest private employers and I look forward to working with them elsewhere in the city.
"In particular, I am excited about their regeneration project in Toxteth, currently under construction."
A Tesco spokesperson said: "We were disappointed with the recent legal decision as we had an exciting development proposed for Great Homer Street, however we recognise that the council want to see the total regeneration of the area happen sooner rather than later.
"Following discussions with the council we will now enter negotiations to sell our land, which would remove any reasons for further delay.
"We have a number of other opportunities to invest in Liverpool and we look forward to bringing these projects forward."
(BMcC/KMcA)
