Documents published by Rossington Parish Council said the firm was planning to set up a base as part of the iPort, which is being built next to the new White Rose Way airport link road.
Senior councillors say they would welcome a major Lidl development, which they believe would bring jobs to the area.
But the company itself has denied having either bought any land at the site, or filing a planning application for the scheme.
Rossington Parish Council says the documents - draft minutes from a meeting - linking the retailer to the site were based on talks with a senior Doncaster Council officer.
Chairman of Rossington Parish Council, Coun Barry Johnson, said he thought a major Lidl base moving to the iPort, which will lie between the village and the M18, next to the newly built Great Yorkshire Way road, would provide a major shot in the arm for the area.
He said: “I think anything that is going to bring employment to the area will be gratefully received.
“When we campaigned for Great Yorkshire Way and the airport, the employment part was the main thing and it is all contributing to the regeneration of Rossington and Finningley and the south of Doncaster.
“There have been some people saying that they don’t want the iPort, but it’s the future.”
It is not yet known how many jobs would be created if the Lidl plans come to fruition.
But Coun Johnson believes any development will also help the economy by providing work to local suppliers.
He said it was the first name to be linked with the site, and that other businesses would see it as a vote of confidence.
A Lidl spokeswman said: “I can confirm that Lidl have not submitted a planning application to build a distribution centre at Rossington in Doncaster.”
She added: “Lidl UK has not bought this site.”