Tesco is set to buy 47 outlets of restaurant chain Giraffe in a deal worth up to £50 million, according to reports.
It is expected that outlets of the children-friendly eatery will be opened up within Tesco supermarkets nationwide.
The move comes as Tesco's CEO Philip Clarke recently pledged to make the retailer's stores more consumer-friendly and less clinical.
Under the deal, Giraffe's original founders and management team will be retained by Tesco.
Founders, couple Russel and Juliett Joffe, along with other investors and management staff, will be selling a combined stake of around 54 per cent to the retailer.