Wallingford could have a new post office within a year.
The town has been served by a temporary building behind the Regal Centre for the past four months, after the closure of the previous post office at Martins newsagent's, in St Martin's Street, when Martins decided not to renew the lease on its premises.
Now plans have been lodged with South Oxfordshire District Council to expand KP Stationers, in Market Place, to create a new permanent post office.
The temporary post office will stay open until the new one is ready.
Mayor Betty Atkins said: "We have high hopes that our post office will be in a proper building within a very short time.
"A lot depends on KP Stationers getting planning permission. But if that is decided quickly, then I'm sure the new office could be opened within the next 12 months.
"The temporary post office has been a marvellous stop-gap but it was never intended to be here for years."
Wallingford Business Partnership chairman Elaine Hornsby welcomed the move towards a permanent post office for the town but said: "We traders wish it could be back in the building where it was before.
"When the post office moved out with Martins, it gave no real reason for many shoppers to come to that end of town. Traders felt a definite difference in the number of people coming into our shops."
Royal Mail spokesman Jane Thomas said: "Details still have to be finalised but we have high hopes of setting up a post office in KP Stationers within a very short time.
"Negotiations are nearly complete and we have a prospective sub-postmaster in mind to run the venture."
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