The UK's biggest supermarket chain, Tesco, is to create 1,500 jobs in a major expansion in Ireland.

The group will open six new stores, replace three existing ones and build a new distribution centre in Dublin.

The �66m (100m euros) investment was confirmed in Dublin by Irish Prime Minister Bertie Ahern.

Tesco is already the market leader in Ireland, with 76 stores.

'Proud'

Speaking at the presentation of the Tesco Irish Food Producer Awards in Dublin, Mr Ahern said: "These jobs bring good news to a number of locations throughout Ireland.

"Tesco will continue to be a major investor in Ireland and the announcement today of new capital expenditure of over 100 million euros through this expansion programme is testament to their commitment as well as the future buoyancy of the retail market here."

Tesco chief executive Sir Terry Leahy said: "We are very proud of our record in Ireland over the past five years and we look forward to the future with considerable confidence and enthusiasm."

Tesco Ireland's corporate affairs director, Dermot Breen, said sales were buoyant.

But the new development was simply "catching up with a lag in development in the past few years.