Shrewsbury and Atcham Borough Council wants to build the theatre on a site on the riverside at Frankwell Quay.

Talks have been taking place with landowners about whether they are willing to sell by negotiation.

A council report says a compulsory purchase order should be made while architects prepare a detailed design so an application can be submitted.

Suitable site

Peter Jarratt, the council's director of development services, said it was vital the design of the building fitted in with the character of the area and was acceptable to the local community.

"We have been trying to find a suitable site for a theatre over the last two years and the site we have chosen is ideal," he said.

"We are hoping to build a 750-seat theatre and possibly a workshop."

The council hopes the venue will be completed by 2007.

A report on the matter will be discussed by the council's cabinet next week.