Aberystwyth Town Council has an office in the building
A disused town hall could be turned into a library under plans by a local authority.
The building in Aberystwyth is owned by Ceredigion council, but it became redundant when the authority opened a new office seven months ago.
Officials have held talks with several organisations about funding the development, including the Welsh Assembly Government.
The council said work could start on converting the building within a year.
Aberystwyth Town Council had shown an interest in buying the town hall, but a spokesman said it fully supported the project to develop it.
The town council currently has an office in the building, and it is believed that would continue if the plans were given the go-ahead.
Conversion costs are estimated at £1m.
A Ceredigion council spokesman said: "Ceredigion County Council has held exploratory discussions with several funding bodies, including the Welsh Assembly Government, in regard to possible sources of funding that could enable the establishment of a public library and archive service at the Aberystwyth Town Hall.
"Although those discussions have proved encouraging, it remains to be the case that funding has yet to be confirmed.
"The county council is, however, optimistic that an announcement of those negotiations, having reached a conclusion, might be made by mid May 2010.
"That being the case, the county council has been anxious to put itself in a position to be able to jointly fund progressing a first phase of the project during the current financial year, subject to it being possible to capture external funding support."