Tractor firm Thurlow Nunn Standen closed its prominent Bridge Road branch in 2007 when it created a new branch at Littleport and the buildings have been left empty.

Now the company is seeking permission to use the site for retail and prospective businesses include Sue Ryder Care and the Original Factory Shop.

The application is due to be discussed by the council's development control board on Monday and is recommended for approval, but members will need to examine the impact the new shopping area could have on Downham town centre.

The application has been submitted with a retail impact assessment which states a need for more retail space in the town, especially for larger shops

It said the new development was "unlikely to have a significant impact" on the town centre and would give customers greater choice, helping to attract more shoppers to Downham.

In a report to the meeting, planning officers said: "This proposal will inevitably draw some trade from the town centre and could well lead to additional vacant units. This is difficult to precisely ascertain but it is likely at least one unit (the existing Sue Ryder unit) is likely to close." But officers agreed there were only a limited number vacant shops available in the town, despite the on-going credit crunch.

The report said: "There are now only five premises within the town centre or in edge-of-centre locations which are currently vacant and being marketed as available. This would seem to confirm that in Downham, despite current market difficulties, there is still market demand for retail units in the town centre."

Downham Town Council welcomes the prospect of new jobs and has said the development appears not to conflict with any other businesses operating in and around the town centre.

It wants to see the boarded-up building back in use and hopes the new shops will improve the appearance of the site. The borough council has, however, received five letters of objection, raising fears about the busy road, lack of footpaths and street lighting.