Plans to wipe a derelict shopping centre off the map could be on the table before Christmas.
Worthing Borough Council said it was expecting developers to submit plans for Teville Gate within the next two or three months.
Proposals to build a multi-screen cinema on the site have been ditched but the council hopes to include some form of leisure facility alongside blocks of flats.
The council's executive went into secret session to discuss the matter in detail, for which chief executive Sheryl Grady apologised.
She said: "There have been a number of meetings taking place between your officers and various other people interested in the Teville Gate site.
"Although I cannot give any definite dates, your officers do anticipate we should receive an application with regards to the site within the next two to three months."
Councillor Sheila Player, leader of the council, said: "It is extremely pleasing to have made such progress on this derelict site, which has long been an eyesore for Worthing."
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