Plans to replace the Isle of Man TT grandstand in Douglas are in their “early stages”, the Department for Enterprise (DfE) said.
The new development would be constructed “over the existing building footprint”, a spokesman for the department added.
The plans would also result in the paddock being upgraded.
The current tower and seating area – adjacent to Nobel’s Park on Glencrutchery Road – opened in 1986.
The facility, which is used during the TT races and the Isle of Man Festival of Motorcycling, is situated at the start line of the island’s mountain course.
The total cost of the project is not known, however £250,000 was approved in the 2019-20 budget for “preliminary work”.
A “significant amount of design and planning work” is needed, while those living in the area will also have to be consulted.
“As such we cannot confirm a timeframe for the commencement of the work or completion,” the spokesman added.