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Plans for an eco-town on a former airbase are to go before councillors.
The former RAF Coltishall in Norfolk has been shortlisted as one of 15 prospective sites by the government.
A report before North Norfolk District Council says an eco-town would offer affordable housing but would be a "major" planning challenge.
If the scheme is backed at a full meeting of the council on Wednesday night, officers will discuss the idea further with the government.
The new environmentally-friendly towns - low-energy, carbon-neutral developments built from recycled materials - will be the first new towns since the 1960s.
No decision has been made on the size of the potential development at Coltishall, but last year a developer put forward plans for an eco-town that could provide up to 10,000 homes.
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