A planning application has been submitted to Telford & Wrekin Council to convert the first and second floors of the redundant Madeley Library to provide a mix of commercial space and residential apartments.
The library moved into the town's landmark Anstice building early last year, leaving the building off Park Avenue empty.
Under the new proposals, part of the first floor and the entirety of the second floor would be converted into four one-bedroom and two two-bedroom flats.
The remainder of the first floor would be used as commercial space.
A design and access statement, submitted with the planning application, states: "The proposals seek to alter a redundant commercial space so that it would be more viable for potential businesses, while providing much-needed residential units within the town centre.
"This will also provide support and custom for the existing businesses of Madeley.
"The proposals do not have a detrimental effect upon the existing building or its setting and therefore ask that the application be considered favourably.
"The layout utilises the natural features of the building to create the appealing commercial space and the individual residential properties.
"The scale of the proposals is in keeping with the existing building.
"The commercial unit is a size that is large enough to attract a quality user.
"The apartments are a mix of one and two bedroom, open plan designs of a scale that is in need within the town centre."
The plans say there would be very little external alteration and the retail units on the ground floor of the building would remain unaffected.
The final layout would be subject to a separate planning application, to be submitted by the prospective tenant.
The library's move to the town's refurbished Anstice Memorial Hall last year meant it could open to the public for two extra days on a self-service basis.
It benefited from a completely new fit and layout, with new computers and a document scanner for public use.
Telford & Wrekin Council is due to make a decision on the planning application in the upcoming months.