A £70 million makeover is set to breathe new life into Hester's Way.
Cheltenham Borough Council is in talks with agencies across the county about the possibility of a major facelift.
If the multi-million pound overhaul gets the go-ahead it would focus on run-down shopping centre Coronation Square.
The 1960s development would be knocked down and rebuilt with 30 shops and a centrepiece.
The borough is also supporting Gloucestershire County Council in a bid to build a new care home, catering for more than 100 people, on the former Monkscroft School site.
It could include open green space for the public and better road connections.
Hester's Way residents have welcomed the news. They hope a new look and more businesses would provide a much-needed shot in the arm for the community.
Once the thriving hub at the heart of Hester's Way, the shopping centre is now a wasteland of boarded-up shops and empty units. It's plagued by anti-social behaviour.
Bridget Dunt, from Welch Road, says people would be delighted if the project got the green light.
The 57-year-old said: "Coronation Square is disgusting. It's boarded up and it looks like a rough area. People see it and decide not to shop there."
When it was built, Coronation Square was a thriving bustling centre with three banks, a launderette, dry cleaner, hardware store and a shoe shop.
Ethel Burns, 76, from Edinburgh Place, remembers when it was new. She said: "It was really good. You didn't have to go to town, you had everything up here you needed. You weren't frightened to go shopping then, but you are now with gangs of youngsters hanging around."
Coun John Morris, Cabinet member for the environment, is pleased with the progress of work to date. He said: "This is the missing piece of the jigsaw in Hester's Way - the shopping centre is crying out for redevelopment, but the authority can't achieve that single handed.
"We are working with the owners of the shops to enable a scheme which can improve the retail provision at Coronation Square - by combining with our other partners we can achieve a new beginning."
In the past few months, Cheltenham Borough Council has been working in partnership with the county council, Cheltenham Borough Homes, Gloucestershire College and the owners of the shopping development B2 Retail. The funding for the project would come from all four partners.
Mike Redman, assistant director of built environment at Cheltenham Borough Council, said plans could see the square redeveloped into two blocks with a large central square.
"We see the centre primarily serving the needs of the people in the locality. We don't want something to be competing with the town centre," he added.
The council has commissioned urban design work from local firm DNS Stuart. It says it will ensure residents are consulted.
Grahame Lewis, strategic director for environment at Cheltenham Borough Council, said: "It may be possible to submit a planning application in the early part of 2009, with work possibly starting later that year.
"The final scheme could take three to five years to complete and cost in the region of £70 million"
Taken from the Gloucestershire Echo 2nd Sept 2008
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