The development of a supermarket on land off Eastgate South would lead to a car parking shortfall of 273 spaces in Driffield, the town council has been told.
Currently, there are 710 public car parking spaces in the town centre which are said to be fully used - including more than 130 which are free all day.
Driffield town council was told last week that the redevelopment of the cattle market site as a supermarket would require an additional 396 new car parking spaces.
And the loss of more than 130 free long stay car parking spaces would cause significant difficulties for those who live and work in the town who would no longer be able to use a car park for a whole day.
The report was compiled by Mr Andy Rafter and was presented to the town council for discussion along side a planning application submitted by the Driffield Cattle Market Company to build a supermarket.
It is expected that East Riding of Yorkshire Council, the owners of the Eastgate car park, will sell the land to developer as part of any approved supermarket scheme.
Mr Rafter said: “There is a shortfall in the proposed provision of car parking spaces of 273, which can only be to the detriment of the vitality and viability of the town centre as a convenience shopping and business centre for the town.”
After discussion the town council agreed to support the planning application by seven votes to six.
The final decision will be made by the East Riding of Yorkshire Council, which is the planning authority.
The town council has recommended that if the supermarket gets the go ahead, conditions should be imposed regarding delivery times. The town council also wants to see The Grapes car park become a long stay facility to those who work in the town.