A business plan setting out how St Andrews Botanic Garden can be saved from closure is due to be finalised next month.
The crucial document is expected to propose that the attraction is taken over by a trust with Fife Council providing half the grant it does presently.
Development of a portion of the garden is also likely potentially for housing, retail and leisure with any money generated going to the trust.
The garden’s future was placed in question in 2010 when the council admitted it could no longer afford to fund it to the tune of almost £300,000 a year.
Its lease from St Andrews University runs out in September and unless a solution is found the garden may face closure. Fife Council’s North East Fife Area Committee is due to discuss the issue on Wednesday.
In a report for the committee head of leisure and cultural services Grant Ward said: “Work is progressing in order to try to secure a viable and sustainable future for the St Andrews Botanic Garden.
“The development of a detailed business plan is being led by the Friends of St Andrews Botanic Garden and should be complete by the end of May.
“This will determine the feasibility of a new organisation managing and operating the facility upon expiry of the current lease arrangement between the council and university.”
It is suggested the Botanic Garden Education Trust or a new trust takes on a long-term lease for the site.
A council grant of £250,000 would be provided in the first year to allow the trust to find its feet and source alternative funding, dropping in increments to £150,000 in 2016/17.
While the university has stressed it cannot contribute financially it has confirmed willingness to covenant to the trust any capital receipt from a partial development of the site.
Mr Ward said: “The university will need to be satisfied that there is a viable and sustainable business plan in place before awarding a new long-term lease for the facility. A final decision is expected from the University Court on June 19.
“The council will require the same assurances if it is to provide continue support via a recurring voluntary grant.”