Councillors will discuss a deal to move coach parking facilities to a new home in the city.
Lichfield District Council has been looking to identify a new location ahead of the Friarsgate redevelopment, which will see the bus station relocated.
A proposal has now been drawn up for coach parking to move to land owned by Staffordshire University and South Staffordshire College.
The site is currently leased by Lichfield District Council as a car park, but the new agreement would see new coach bays introduced and the entire site resurfaced.
A report by Cllr Ian Pritchard said “The planned Friarsgate development does not include any coach parking in its new parking arrangement.
“Friarsgate will remove five long-stay coach parking spaces and one drop off coach parking space.
“The Staffordshire University West car park, located at the university Campus has been identified as the ideal location.”
An agreement has been reached with the developer for a £450,000 contribution to the creation of eight new coach parking bays, while the Greater Birmingham and Solihull Local Enterprise Partnership is also expected to put £500,000 into the pot.
However, the proposal will also require backing from Staffordshire County Council due to a covenant which restricts development of the site for anything other than educational uses.
If agreement is reached, a 25-year lease would be signed with a rental agreement of just £1 per annum.
Plans for the new coach park will go before Lichfield District Council’s Cabinet on October 4.