The new offer has been created as part of a collaboration with Microsoft and uses its Silverlight streaming technology. Tesco said the download will be near-DVD quality.
The downloads will also offer exclusive content such as movie trailers, games, mp3s and ringtones. The initiative will launch in the autumn.
Rob Salter, category director for Entertainment at Tesco, said: "For the first time, consumers will be able to enjoy a DVD equivalent experience with digital movies, which paves the way for more advanced viewing experiences enabled through Silverlight.
"In the future we expect to offer our customers innovative digital solutions that far exceed the DVD experience and deliver exclusive content, web events, and services wherever and whenever they want them."
Tesco's move follows the news that as part of a plan to charge users to stream movies online.