New housing and shops could be provided under a redevelopment scheme for parts of Kippax High Street.
Leeds City Council and Kippax Parish Council are drawing up plans to refurbish the Hermitage, a derelict Grade II-listed building at 31-37 High Street.
Shop units in the empty building could be brought back into use under the scheme, which could also see an unkempt area of land at 25-29 High Street redeveloped for residential use.
A report to Leeds City Council’s executive board said a developer was being sought to take the scheme forward, and the council could use a compulsory purchase order on both properties to make sure the project went ahead.
Council leader Keith Wakefield said the derelict building was an eyesore.
He said: “Local councillors, the parish council and traders have been trying to tackle this blight for some time.
“There is no doubt it distracts from the wider investment in the high street and I’m pleased that action is finally being taken. It will make a big difference to local people.
“It is essential that investment in Kippax High Street continues to ensure that we attract more shoppers to the centre, boosting footfall for traders.”
The council said the scheme could improve the village centre by better connecting it to High Street, with pedestrian routes running to St Mary’s Church on Church Lane.
Market research had been carried out and initial discussions were held with businesses in the area.