The owners of the shopping centre, LCP, have submitted plans to Wolverhampton Council for a three-auditorium cinema.
The application seeks to change the use and layout the former Argos store within the Wulfrun Centre to include three auditoria, seating 164, 97 and 87 seats, plus 1,850 sq ft allocated for restaurants and food.
As part of the proposals the external frontage to Cleveland Street will also be enhanced.
Andrew Barrett, retail director at Kingswinford-based LCP, said: “We are excited to unveil our plans for the future success of the Wulfrun Shopping Centre and bring a much-needed leisure facility to the heart of the city centre.
“We believe there’s huge potential to create a stronger night-time economy in the city and complement existing traders in the shopping centre.”
The old Argos store has been empty since the retailer became part of the Sainsbury’s superstore on the ring road.
The potential launch of the independent cinema comes as plans are progressing on bringing a national cinema chain to the city as part of the £55 million Westside development.
While bosses at Wolverhampton’s Light House insist they do not see the potential arrival of another independent cinema as a threat.
Chief executive Kelly Jeffs questioned whether another independent cinema could be successful in the city centre given the level of competition.
However, she said “anything that improves Wolverhampton’s cultural offer, particularly in the evening, has to be a good thing”.
A decision on the cinema plans will be made by Wolverhampton Council in the coming months.