Rushmoor Borough Council is seeking to buy and redevelop the land by Farnborough Leisure Centre including the former police station.
Farnborugh Police Station closed in November last year after the safer neighbourhood team moved into the council offices, in Farnborough Road.
It came after an announcement in 2011 that both Fleet and Farnborough police stations would close as Hampshire Constabulary sought to make £50 million in savings by 2015.
The council is interested in buying the vacant building in Pinehurst Avenue along with land around it so that it could be redeveloped and is currently in negotiations.
The council's plans include creating a new public green space as focus for the town centre and new homes on the police station site.
A prospectus set out by the Farnborough Town Centre Partnership, led by the council and its consultant team, states that the area could provide a suitable site for a theatre or cultural venue.
Andrew Lloyd, chief executive of the council, said: "The area around the leisure centre is out for public consultation and we are looking at potential prospects and setting out how it can be used.
"The next stage is to complete a master plan for the area, which will be subject to public consultation, and the public will be able to make their ideas known.”
Mr Lloyd added: “The prospectus does make it clear there will be a civic quarter and the green area will always be protected, not redeveloped, so there will always be a focal point there.
“There will be an opportunity for people to put their ideas forward.”
Rob Lane, of Church Circle, has raised the idea of installing a war memorial for Farnborough's fallen soldiers in the green space.
There are currently war memorials for Farnborough's fallen soldiers at Knellwood residential care home, in Canterbury Road, and Devereux House care home, formerly the Farnborough and Cove War Memorial hospital, in Albert Road, however, Mr Lane believes a memorial should be installed in a public area of the town.
He said: "These memorials were well done by the council many years ago but they are not the sort of place you would normally go and visit a memorial.”
The council intends to hold an exhibition in Princes Mead with a date yet to be finalised.