Castletown Commissioners say there has been no "concrete approach" from Tesco to progress retail plans in the town.
The supermarket giant has shown interest in opening an Express store on Malew Street for a number of years - something blighted by multiple failed alcohol licence applications.
Now Callow's Yard owner Roy Tilliard has asked the commissioners to signal if they would support a new bid for a licence.
The board says it would be willing to meet with Tesco to discuss a specific approach but they don't feel one has been made.
In addition the Clerk says he approached the Tesco officer involved in the applications previously who says he hasn't been asked to seek a further licence for the site.
Mr Tilliard has previously claimed that if Tesco opened, Poundland would also look to open a Dealz store.
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