Thirsk Auction Mart is planning to leave town after a century of business on its Station Road site.
It is hoped that purpose-built premises on the edge of the town's bypass will prove to be a suitable site for the new mart.
The owners, Farmway, the farmer-owned co-operative, and Todd's builders' merchants, hope to get planning permission for a 20-acre site south of Thirsk by-pass, at its junction with the A19 to York.
For it to go ahead, Hambleton District Council needs to approve not just plans for the new site, but also a redevelopment scheme for the existing site in Station Road.
York-based Persimmon Homes are about to submit an outline planning application for about 150 homes - a quarter of which will be low cost housing - together with a recreational area on the 11-acre mart site.
Rodney Cordingley, the mart manager, said: "Our premises are far from ideal at the moment, both in location and facilities.
"We are in a residential area, the site has been developed in piecemeal fashion over the years, the buildings are rather dated and our lairage facilities are limited.
"The new site is much more easily accessible. At the moment, heavy lorries travelling to the mart from Ripon, York, Northallerton and Helmsley tend to go through the middle of Thirsk or along Topcliffe Road past two schools. In future, they won't even need to touch the town, which will be much safer for everyone.
"We feel we would be much better situated outside a residential area.
"The location we have identified is outside Thirsk and won't even be seen from the town or Sowerby because it will be hidden from view by the bank of the by-pass. It also provides substantially larger lairage facilities."
The mart chairman, Harry Woodhead of Felixkirk, said: "With the mart at Ripon now closed permanently and with Northallerton down from two markets to one a week, we feel it is more vital than ever that Thirsk continues to have its own.
"We are committed to it having a sustainable future, something we are sure the new location, with its enhanced, purpose-built facilities, would provide. In making the move, we would also release land for badly-needed low cost and other housing in Thirsk."
Mr Woodhead added: "I have earned my living in Thirsk and I would like to be able to ensure that the next generation can too."
Farmway operates a very popular country store alongside the mart and Thirsk, according to chief executive David Loane, is an important branch for the farmer-owned co-operative, providing essential services in a broad range of requisites for farmers, horse owners and other country dwellers.
The inclusion of the site in the development plan is conditional on securing suitable alternative premises in the area.
Todd's is another long established Thirsk-based firm. Director Ken Todd expanded his business several years ago by buying a large site in the industrial park, and this approach now offers Todd's the chance to relocate the builders' merchants to the new purpose-built facility.
By relocating the builders' merchants, Todd's will create the space to increase their product choice even further.
Thirsk NFU group secretary, David Palmer said the news was most welcome. "It is good to hear that the mart is looking to continue a firm commitment in providing a new agricultural and livestock market. It is very important for agriculture in the area.
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