The scheme would see the former Debenhams store in Three Spires Shopping Centre adapted into a four-screen cinema attraction together with five food and beverage units.
Cabinet has recommended that the Council agrees the allocation of £5,349,000 from the capital programme and a partnership with Evolve Estates, the owners of Three Spires Shopping Centre.
Evolve Estates, which has a £300 million property portfolio and is part of the M Core group, would invest in the cinema on a 50/50 basis with Lichfield District Council.
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An operator is in late stage discussions with Evolve Estates and Lichfield District Council and would fit out the cinema element of the building to create a multi-screen facility featuring a mixture of small (up to 48 seats) and large (up to 120 seats) screens.
If approved by the Full Council on Thursday 20 October, work will commence on the building before the end of the year subject to any necessary planning permissions.
Leader of Lichfield District Council, Doug Pullen, said: "I am delighted that Cabinet has recommended investment in the cinema scheme to Full Council which will provide the district with an important, and much called for, leisure facility.
"The willingness of Evolve Estates to work with us on the scheme, as well as funding from an established cinema operator, gives me every confidence that this long-awaited scheme will now move forward, and demonstrates our new approach to unlocking the potential on this site is working.
"The scheme has cross-party support and approval by the Council next week would be the final piece of the jigsaw before we can go ahead with the project and make it a reality."
