Stafford Borough Council is set to buy the old Co-op department store, on Gaolgate Street, as part of plans to regenerate the north side of the town centre.
The building could be transformed to include both residential and retail use and space to accommodate a market.
Plans to purchase the site are set to be discussed in a cabinet meeting on 5th October.
The proposals come under the local authority's plans to improve and regenerate the town centre, after it secured a £14.3m investment from the government's Future High Streets Fund.
The derelict store, which closed as the Co-op in 2013, was damaged in an arson attack earlier this year.
The building is opposite Stafford FM's studios and is currently a home for pigeons.
Council leader Aidan Godfrey, said the local authority had made improving the town centre its "top priority."
"Developing this substantial and derelict building is yet another piece in that transformation jigsaw," he explained.
"I am really pleased we now have the opportunity of purchasing the former Co-op building with exciting ideas to bring it back into use."
Work to renovate Market Square in the town centre began in January, as part of a £1m restoration project which is set to be completed within weeks.
Deputy leader Rob Kenney, said the council was pushing forward with the plans "with greater urgency."
"Local people have waited long enough to see something happening," he said.
"Purchasing this prominent, disused building in the heart of the town centre, with the chance to create a retail, residential and leisure offer, is a huge statement of our intent."
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