A £110m bid by a healthcare group to take over Devon County Council-run care homes is to be considered.
It approved, Shaw's bid would be examined further
Shaw Healthcare Group was shortlisted ahead of 10 bids to develop the council's in-house residential and domiciliary care services.
The group say they will boost services and modernise care homes, although some homes could be shut as part of overall improvements to residential beds.
Councillors will decide whether to name Shaw as a preferred bidder on Tuesday.
Last year Devon County Council invited proposals from care providers to take over and develop the services.
The council says it has been looking for a solution to ensure continuity of care and investment to fund new care.
Shaw Healthcare was shortlisted after evaluation by Devon county, district and city councils, service users, carers representatives, staff and trade unions.
The group, which is jointly owned by its staff and a national charity, runs services across the country.
A report by Devon's Adult and Community Services says the bid would offer the opportunity to ensure continuity of care, more specialist and high dependency care services and more residential care beds and care homes with modern facilities.
But a small number of homes could close to make way for the creation of more residential beds overall for people with specialist needs across the county.
If the council executive approves Shaw Healthcare as the preferred bidder, their case would be further investigated before final recommendations are made to county councillors.
The county council's in-house residential and domiciliary care services include 26 care homes.