Denbighshire Council is in talks with the Prestatyn Town Development Committee after town councillors voted to scrap charges at Fern Avenue car park.
The move comes after the free car park near the Stadium development was closed after work began on the site, putting pressure on shoppers in Prestatyn.
Cllr James Davies said they had been pushing for free parking but not making any progress.
He said: “If this goes through the bottom of the High Street will hopefully benefit from free parking and footfall.
“We wanted to do something to boost the top of the High Street, to help it compete. Fern Avenue isn’t used much at the moment, and if the Town Council was to subsidise it, it wouldn’t be too costly.”
The car park has 65 spaces and it is hoped county councillors will agree to a trial of a year’s free parking.
Cllr Davies said: “Even if it only costs 10p for half an hour short stay, more than anything it’s the principle of it. We want to encourage people to come to town without having to find change or run to the machine.
“The committee felt strongly that this should go through. I was pleasantly surprised that they voted unanimously. There’s no reason why this shouldn’t go through quite quickly.”
The news that Fern Avenue could be free to members of the public was welcomed by business owners.
Geoff Lawman, owner of Presents With A Difference, said: “I think it’s a good idea. Car parking always does a town good. The Tesco car park used to be full all the while.”
Diane Williams, owner of Dudley and Friends pet shop, said the car park could make shopping more practical.
She said: “We’re quite glad it might be a free car park. At the moment it’s not used and we’re hoping it will bring people up to the top of the town because they don’t come up here. It could bring a bit more trade.
“It makes sense for us, because we sell big bags of animal food, and people won’t walk far carrying that.”
A Denbighshire spokeswoman confirmed the County Council was considering the idea.