Knowsley Council has submitted plans to create a new £2.5m Kirkby Market in the town centre.
Marty Davies, chairman of Kirkby Market Traders' Committee, said: "Kirkby Market is a rewarding place to do business and it has been helpful that the council has involved us in the work to shape the plans for its future.
"The council has provided opportunities for us to openly discuss our ideas and requirements and they have been responsive to our comments and suggestions.
"The planning application is a really important step forward for the future of Kirkby Market."
The plans include better weather proofing and covered areas, improved visual appearance, easier access to stalls, shoppers' toilets and enhanced links to the town centre.
If approved, the council hopes that this development may also lead to the greater potential for elements of the market to increase trading to six days a week in the future.
Mike Harden, deputy chief executive of Knowsley Council, said: "The market has always been a key reason why Kirkby remains so popular with residents and, as such, we want to ensure the facilities we provide there are as good as they possibly can be.
"The submission of this planning application is a positive step forward in the regeneration of the town centre and will be followed shortly by the submission of our proposals for the £5m remodelling of the former Kirkby Suite building."
The community have until 13 August to make any comments or provide feedback on these proposals in writing.
Work has started to prepare the site for redevelopment, including the demolition of the existing market offices. If the planning application is approved it is anticipated that work will commence in January 2013 – so as not to disrupt the essential Christmas trading period.
The new Kirkby Market is expected to open in summer 2013.