A motion to rework the one-way road around the Greyfriars site into a dual carriageway with pedestrianised access to the Grosvenor's Centre has been submitted to Northampton Borough Council.
Labour councillors want to reconfigure Lady's Lane into a two-way road to support any future developments on the site of the former Greyfriars bus station.
It would include pedestrianising the Greyfriars road itself and building links between the island and the town centre.
Councillor Jane Birch, who proposed the motion, said: "Greyfriars will always be a problem as it is on an island and not connected to the town centre.
"If you can integrate the site with the Grosvenor's Centre the mutual benefit for both areas would be greater.
"It's not impossible and it would benefit the people who live and work in the town."
The motion, which is set to go before a full council meeting on December 10, says the Greyfriars site "remains undeveloped and it looks likely to remain a wasteland in the centre of town.
"This council further resolves to build a mix of family housing on the site including 50 per cent social housing. The development will also include retail, amenities and leisure facilitates."
However, the motion was submitted before it was revealed this week (November 28) that talks between the council and developers Carter Endurance had broken down.
It has emerged the developers cannot follow through on their proposal to build up the Greyfriars site and the council has been sent back to the drawing board.
Leader of Northampton Borough Council Jonathan Nunn said the breakdown in talks was an "opportunity to take a fresh look at things".
If the motion passes, the council will investigate if reconfiguring Lady's Lane as a dual carriageway can be.