The Market Hall in Droitwich could be forced to close to make way for a new Waitrose supermarket, it has emerged.
Plans to build the luxury superstore off the High Street will be presented to Wychavon District Council later this week.
Planning experts will consider the application that could be the answer to years of effort by the council and developers to ensure there is new retail investment in the town.
The plans could also overcome the shortage of food stores in Droitwich, supporters say.
Earlier this year the council's retail consultants recommended the authority identify a suitable site in the town centre for a superstore.
But the proposal suggests Waitrose be built on the site of the car park and Market Hall.
"If the proposal is successful, this may mean the closure of the Market Hall," said Sid Pritchard, Wychavon District Council's managing director.
A council spokeswoman said the layout of the existing car park was inefficient and promised other land would be set aside for another.
Droitwich Properties Ltd has owned the Market Hall, built in the early 80s, for five years.
One of its company directors, Stuart Larnder, said the purpose-built retail area would continue to operate as normal until the firm had definite confirmation building would go ahead.
"If it comes about it would greatly affect the stallholders who operate the business," said Mr Larnder.
"We are keeping traders up to speed with everything that is going on.
"Even if the proposal goes ahead we believe the council recognises there is a need for a market for the people of this town."
Mr Pritchard pledged alternative sites would be considered to make sure market facilities were maintained in the town
But he said the supermarket plans could boost the quality of shopping.
"The council is pleased that after years of speculation it is now able to invest some of its resources to create better shopping facilities for the people of Droitwich as well as generating an annual income better than currently available," he added.
The plans will be dealt with as normal - allowing objectors to lodge their complaints when the proposal is debated by Wychavon's planning committee.
"We would welcome everybody's views on these exciting proposals," said Mr Pritchard.
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