Helston's cattle market, unused since the foot and mouth outbreak in 2002, is to be part of a £600,000 improvement scheme of the town's Coronation Park.
The money is being provided by the Office of the Deputy Prime Minister under a scheme called "liveability."
The aim is that local communities have a bigger say in the way that public spaces are redeveloped.
If the plans are approved, work will start in August on a new cafe, toilets, play space and road access.
There are also plans to build a farmers' market on part of the old cattle market site, but this would need separate funding.
Replies to a public consultation organised by Kerrier District Council showed that people living in Helston wanted a new future for the old building.