The proposals include more student accommodation
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Cheltenham could have a new public library as part of development plans by the University of Gloucestershire.
The facility, which would serve both residents and students, would be built on the site of North Place car park.
The development scheme also includes new student accommodation to help meet the university's proposals to increase its intake by half to 15,000 by 2012.
A spokesman said the university aspired to become more central to the life and fabric of Cheltenham.
Civic pride
The borough council's chief executive Andrew North said the scheme would provide benefits to residents and businesses.
Discussions are already under way for a new city centre campus around Blackfriars in Gloucester to accommodate several thousand students.
It would also include the relocation of art, media and communications departments from the Pittville site in Cheltenham.
The university said its proposals were in response to the borough council-led Civic Pride initiative, which could see the authority's headquarters also moving to North Place.
Development proposals are expected to be released later this year following public consultation.
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