Leicester's current indoor market could be demolished after it was condemned by a new report.
Stallholders, customers and officials have all said the market building felt tired and unwelcoming.
Council bosses have said both the indoor and outdoor markets need investment but felt the former would not be worth renovating.
They emphasised that no decisions had been taken and the outdoor market was not in danger of being moved or closed.
City councillor Andy Connelly said: "The (indoor) market is tired and we think it would not be worth renovating the existing building.
"We have identified the problems but have not decided on any solutions.
"One of the problems is that the square is a dead space on evenings and Sundays - perhaps the solutions lies away from fixed stalls."
Mr Connelly emphasised the process was at an early stage and any changes would be put out to public consultation.