Everton Football Club is in talks about a potential move out of Liverpool into a new stadium in Kirkby.
The last plans to move from Goodison Park collapsed in 2003
The club has identified a site near the town centre to build a 55,000-seater ground as part of a development of shops, a hotel and supermarket.
The club needs to increase capacity and improve its corporate facilities and cannot do that at Goodison Park.
Knowsley Council has confirmed it is in talks to include a stadium in plans for the site off Cherryfield Drive.
An Everton spokeswoman said the club was making no comment.
But Knowsley Council confirmed that Kirkby was being considered as an alternative to Goodison Park.
"We are in the early stages of discussion with Tesco regarding a potential leisure and retail development close to Kirkby town centre," a spokesperson said.
"The development has the potential to incorporate a new stadium for Everton Football Club. Kirkby is one of a number of options being considered by Everton for a potential new stadium.
"The council welcomes the opportunity to discuss a development that could be of great benefit to the Kirkby community and contribute to the ongoing regeneration of Merseyside."
Deputy Leader of the council, Graham Morgan, said: "It will be a fantastic achievement if it could all come together.
"But it has got to be made clear that before we move any further on this some intense talks have to take place between the different bodies involved."
He said any plans would also be subject to a public consultation.
The club's last plan to relocate to a 55,000-seater waterfront stadium at King's Dock, Liverpool, was abandoned in 2003.
Owner Bill Kenwright described that setback as a bitter blow to the club's ambitions.