Wrexham council is set to abandon controversial plans for a heat-treatment plant to deal with the town's rubbish.
Wrexham Industrial Estate was earmarked for an incinerator
A final decision will be taken next week but it has been given a cautious welcome by opponents against the plant and earlier plans for an incinerator.
There was concern over pollution, prompting a 11,000-signature petition.
The council plans to improve recycling and turn its remaining rubbish into fuel pellets.
The long-running issue of getting rid of household waste has led to a number of schemes and protests over recent years.
When proposals first emerged for a rubbish incinerator on the town's industrial estate it provoked protests and thousands signed a petition.
Portugese firm HLC announced it would use a thermal process instead - producing lower emissions.
But the protests continued and Wrexham Council officials have now concluded the scheme is no longer viable.
Councillors have received a new report about introducing more recycling and will discuss the issue next Monday.
The new plan involves waste being converted into fuel pellets which can be used in industries such as cement production.
Campaigner Caroline Munro said she was hopeful recycling efforts - such as kerbside separation - would be improved.
"It was thought Wrexham residents would not react to it (recycling) but the pilot scheme has shown they have been very responsive," she said.
Mrs Munro said she wanted to see the finer details about the fuel pellet scheme.
"We do really need to know what the specifications for the fuel pellets will be, what they are going to do before we can comment.
"Having said that we wouldn't want to be negative, this is very strong leadership from the council".
If the recommendation is passed, the council's recycling scheme will be intensified and a plan to make refuse derived fuel (RDF) will go ahead.
Cllr Aled Roberts, leader of Wrexham Council, says the new proposals are "the best possible solution for a very difficult problem".
He admitted that the strong public opposition had been an important factor in the decision to find an alternative option.
He said: "We have listened to the industrialists and the environmental groups.
"Our aim by 2009 is to be, at least, the best recycling authority in north Wales, if not the whole of Wales," he added.