Knowsley Council wants to knock down the former events space on Civic Way and create a 57-space temporary car park with a view to redeveloping the site at a later date.
The Venue, which the council owns, closed in January due to spiralling financial losses and the need for an expensive programme of refurbishment.
A contractor to carry out the demolition work is yet to be appointed, but Knowsley Council estimates that the work would take 26 weeks to complete.
The Venue, previously called the Huyton Suite, is attached to the Huyton Central Library in the town centre.
The site was identified as a development opportunity in the Huyton Village Masterplan, drawn up in 2017 by the council in conjunction with planner Allies and Morrison Urban Practitioners and real estate consultancy GL Hearn.
Cllr Tony Brennan, cabinet member for regeneration, said: “This is another milestone in our development plans for Huyton. The site offers a fantastic development opportunity in the heart of the village centre and by progressing planning consent, we can ensure the site is construction-ready for any potential developer.”
“Interest in Huyton remains strong and we are focussed on securing investment and uses that improve the offer in the village centre, support the existing shops and businesses by increasing footfall, and take advantage of our fantastic transport connectivity.”