The half price promotion applies to all toys in over 400 stores and starts today (October 27th), ending on Wednesday November 2nd 2011.
Sainsbury's said potential savings for consumers during the offer period will be £18 million.
The news comes soon after Asda launched a promotional campaign on toys, offering up to half price on its toy range.
Sainsbury's however, pointed out that: 'Unlike offers from other retailers', its half price deal applies to every toy in store.
The offer is also available on the retailer's website, but there it only applies to a small number of toys.
Sainsbury's has predicted the Lego Cars 2 Ultimate Build Francesco will be its top selling toy this Christmas, while Dance Star Mickey and the Octonauts Gup A Mission Vehicle are also tipped to be best sellers this Christmas.
The retailer's top ten toys for the 2011 festive season:
- Cars 2 Ultimate Build Francesco - Lego (original price - £25.99, sale price - £12.99)
- Nerf Vortex Proton - Hasbro (original price - £14.99, sale price - £7.49)
- Transformers 3 Megatech Deluxe - Hasbro (original price - £14.99, sale price - £7.49)
- Moshi Monsters Gold Collection Tin - Vivid (original price -£9.99, sale price - £4.99
- Zhu Zhu Pets Puppies - Character (original price - £9.99, sale price - £4.99)
- Zoobles Under Water Play Set - Spin Master (original price - £24.98, sale price - £12.49)
- Club Penguin Puffle - Jakks (original price - £5.99, sale price - £2.99)
- Octonauts Gup A Mission Vehicle - Mattel (original price - £19.99, sale price - £9.99)
- Dance Star Mickey - Mattel (original price - £69.99, sale price - £34.99)
- Monopoly - Hasbro (original price - £15.99, sale price - £7.99)
The biggest saving to be made at Sainsbury's during the promotion is on the Hornby West Coast Highlander Train Set which retails at £129.98 and will be on offer for £64.99.
Robbie Feather, Sainsbury's general merchandise director, commented: "We know that Christmas can be an expensive time of year and budgets are stretched. This is a great opportunity for people to get their hands on some of this year's must-have toys at incredibly low prices.
"Whether opting for traditional, nostalgic, high-tech or the latest TV character, there's something for everyone. The only thing to worry about will be finding somewhere to keep them hidden from prying eyes."