Tom Walkinshaw wants to redevelop the Shed in either 2009 or 2010
Gloucester chairman Tom Walkinshaw has said redevelopment work carried out on the Shed at Kingsholm will see it remain as a terrace.
Supporters had launched a campaign over fears that the famous enclosure would become seated.
But Walkinshaw told BBC Radio Gloucestershire: "We have plans to develop the Shed to make it bigger.
"There will be terracing for about 6,000 people and hospitality units above it."
The Shed currently holds around 4,500 people, with the overall ground capacity set at 16,500.
"The next stage of development now needs the plans to be going in and getting all that approval"
The stand is the last part of the ground to be redeveloped after two new all-seater stands were built at the Worcester Street end in 2004 and the old grandstand side in 2007, the old "Tump" end was redeveloped as a terrace with executive boxes above it for the 1991 World Cup.
But Walkinshaw has admitted the plans are still in their early stages and there is a long way to go before permission is granted and any work can starts.
"We're not getting too much encouragement from the planning department at the moment and that's holding up the development of the site," he said.
"We did the grandstand [in 2007] and we had a timescale for waiting after we did the grandstand for the next stage of development.
"The next stage needs the plans to be going in and getting approved so we can then look at doing that either in the break next summer or the summer after and that's what we're trying to do at the moment."