Construction of the £70m distribution centre is set to start next year as the grocer presses ahead with a major expansion across the country.
It follows hot on the heels of its announcement last month that it would recruit more than 400 staff to man a new £55m warehouse in Southampton.
The firm plans to seize a greater share of the UK grocery market over the next three years by investing £1.5bn into new warehouses and stores.
Adrienne Howells, Lidl UK's head of warehouse expansion, said the grocer was "laser focused" on the sustainable growth of its business.
Lidl and its fellow German discount chain Aldi have shaken up the UK grocery sector and sparked a bitter supermarket price war by stealing market share from Tesco, Asda, Sainsbury's and Morrisons.
The firm has lodged a planning application to build the warehouse at the iPort logistics park on the fringes of the South Yorkshire market town.
Chris Dungworth, investment team manager for Business Doncaster, said: "This is great news for Doncaster and our iPort development, It further cements our position as the logistics capital of the north and shows yet again that Doncaster is very much on the up, open to business and the place to locate new investment.
"We congratulate Verdion and their Property Agents on capturing this new facility and our iPort Academy staff look forward to working with Lidl on recruitment and to the many employment opportunities created."
Earlier this year, Lidl said it would relocate warehouses in Weston-Super-Mare and Livingston to Bristol and Eurocentral respectively.
It is also in the midst of opening two new warehouses in Wednesbury and Exeter, while expanding its regional distribution centres in Newton Aycliffe and Runcorn.
Lidl's sales grew 6.1% over the quarter to 6 November, according to the latest Kantar Worldpanel figures.
Our BQ Bulletin emails will land in your inbox at 7.30am, Monday to Friday, with a mix of the latest local business news, national news, and features to inspire you. Sign up here!
Click here to read our privacy statement