German supermarket giant Kaufland in talks with Sutherland Shire Council

German supermarket giant Kaufland could be coming to Sutherland Shire.

The international retailer has identified a site, but details are being kept under wraps so as not to jeopardise negotiations.

Sutherland Shire mayor Carmelo Pesce said Kaufland Australia representatives first contacted him about a year ago, and further meetings had followed.

"I got them in to brief all councillors because the site they are interested in would need to be rezoned," he said.

"They are still negotiating with the land owner.

"I think they are making sure all the ducks are in a line before they submit anything formally."

In a statement to the Leader, Kaufland Australia said, "We are currently exploring different possible sites and opportunities where we can provide high quality, great service and amazing value to our future customers in NSW".

The global retailer, whose stores have been described as a cross between a supermarket and a Kmart, has revealed nine proposed locations in Victoria and six in Adelaide, but has yet to name any in Sydney.

Meanwhile, rumours that a new Ikea small format store could be coming to Westfield Miranda have been dismissed.

Australia's first Ikea Home Planning Studio opened at Westfield Warringah in May and the company said, if the prototype works, more stores would be opened in suburban Sydney.

It is just 100 square metres, a fraction of the size of Ikea's 30,000 square metre flagship store at Tempe.

Speculation Ikea was moving into the former Toys R Us space at Westfield Miranda was fuelled by Ikea having a temporary sales position in the centre in recent weeks.

Westfield Miranda centre manager Trish Dullard said, "There are no plans for a small Ikea concept at Miranda. There has been a pop up as part of a one-week activation only."