The Post Office has decided against moving its Kirkcaldy branch to the former Clydesdale Bank building.
Instead, it is now proposing to open in a smaller unit a few doors along from the High Street bank.
The building at 206 High Street, near the end of the pedestrianised zone, would replace the temporary base in the Postings shopping centre.
The Post Office was previously located within Tesco but was forced to move when the supermarket closed its doors in April.
The proposed location is 325 metres away from the current branch and would be open 61 hours per week, including on Sundays.
A six-week public consultation on the move is now open and will run until January 25.
Should it go ahead, it will have five serving positions and will be open from 8.30am to 6pm Monday to Friday, 9am to 5.30pm on Saturdays and from 11am to 4pm on Sundays.
This is 15 hours a week more than currently on offer.
The proposed move is part of a major modernisation programme across the Post Office network designed to make it easier for customers to do business.
Regional manager Simon Drinkwater said: “We understand how important having a post office is to residents in Kirkcaldy and we are confident that this new modern post office service will meet the needs of the local community and secure services for the future.”
He added: “This modernisation is part of a major investment programme, the largest in the history of the Post Office and marks a commitment to a no more branch closures programme.”