The site of an historic livestock auction, which was become a haven for illegal fly-tippers, could be turned into housing.
The old Perth Mart, off Crieff Road, was originally earmarked for a new supermarket.
But Sainsbury’s pulled out of the £40million project after a legal spat with rival Tesco.
The group behind the development, Glasgow-based consortium Perth City West LLP, went into administration. However, FRP Advisory, which took over the running of the organisation, recently appealed to Perth and Kinross Council for extra time to progress the supermarket plan after it emerged planning permission was about to expire.
Now Perth City West is about to lodge another set of proposals for the same site. This time, the company wants to convert the two-acre plot into housing.
A planning application for the old mart, near East Huntingtower, is expected to be tabled in the coming weeks.
Developers believe that securing planning permission for both housing and a supermarket will make the site more attractive to potential buyers.
A draft proposal was unveiled to members of the public.
Last week, it emerged that FRP Advisory had agreed to clear up the old mart site after talks with SEPA.
The area is strewn with commercial waste and abandoned machines and vehicles, including two caravans.
Measures will also be taken to increase security and close off the area to vehicles.
According to councllor Henry Anderson, clearance work was due to begin last week but appears to have been delayed.
FRP Advisory has lodged a notice of intention to develop the site for housing with local authority planners.