The historic Wombourne Carnival was surprisingly axed last summer after almost 40 years as the village's showpiece event.
The plug was pulled after insurance was refused for the popular event, regularly attended by 3,000 people.
It was refused because a claim for a young boy who broke his leg on a slide had not been settled.
The parade may not be part of this year's proposed event, meaning it will have to go by a different name, but it is hoped there will be a substantial event in and around Wombourne Civic Centre.
Carnival committee member Paul Edwards said plans would be finalised later this month.
He added: "We think the insurance issue has been sorted and there should be some sort of event this year.
"There is a question mark over the parade as there is increasing legislation regarding parades and the expense of them.
"If the event is just by the Civic then it's not a carnival so the name may change, but there is no doubt we have the support of the village."
The carnival first ran back in 1977 as a one-off celebration for the Queen's Silver Jubilee.
But it proved so popular that it returned the following year and had been held every year since until last summer.
South Staffordshire MP Gavin Williamson has been involved in discussions to bring the event back.
He welcomed the latest developments and said: "People want to see it come back.
"What most people want is an event where the whole village can come together in celebration.
"And there's that sense of having a traditional village fete, which Wombourne should certainly have.
"A real big thank you to the committee and everyone who is working so hard to organise what I'm sure will be a wonderful event."
The carnival has previously been covered for up to £5million damages with 48-hour full public liability cover involving the inside of Wombourne Civic Centre, the car park and nearby field, with the floats relying on the insurance cover of the lorries that carry them.
The public liability policy paid out around £3,000 to a woman who fell over a piece of netting in 2010 and in 2013 a seven-year-old boy broke his leg on a slide.