The initiative came after nearly 100 worried residents met at the Careys Bay Hotel on Tuesday night to discuss the supermarket's future.
The meeting came amid concerns about Foodstuffs' plan to remove the supermarket's New World branding, in favour of a smaller Four Square operation.
Meeting organiser Robyn Broughton, of Sawyers Bay, said the turnout was well beyond expectations, showing the extent of community concern at Foodstuffs' plan.
''I was expecting about 12 people and there was about 100 - and that was short notice.
''It blew me away.''
Those present agreed to a counter-proposal, which would be presented to Foodstuffs representatives during a meeting at the company's Dunedin office tomorrow morning, she said.
Foodstuffs South Island retail operations general manager Alan Malcolmson has agreed to travel from Christchurch to attend, she said.
She would not disclose exact details of the proposal ahead of the meeting, as a sign of good faith to Foodstuffs.
However, the aim was to encourage the community to work with Foodstuffs ''with the goal of keeping [the supermarket] as a New World'', she said.
''I hope they will be receptive to the proposal, which is really a win-win situation. It's a positive for all involved.''
It was confirmed last week Foodstuffs planned to withdraw its New World brand from the store next month, replacing it with a Four Square brand under new owner-operators.
The plan was expected to cost jobs among the 70 full and part-time staff, and residents worried higher prices and a reduced range would follow.
That would hurt those unable to shop elsewhere, while driving away other customers and eventually leading to the store's closure, they feared.
An online petition calling for the supermarket to remain a New World had gathered nearly 1000 signatures by late yesterday.
Foodstuffs South Island staff have so far declined to comment.
