The team running the festival unveiled their proposals at a meeting of the town council.
Clare Honeyfield, who is heading the new festival, said it would be more family-friendly and may run over three days on August 28-30.
“We want to make Stroud the new Edinburgh,” said Lotte Lyster, who runs the Prince Albert and who is a member of the festival team along with Jo Fry and Julie Howe.
Plans include making the festival more environmentally friendly, more family focussed and to expand the events to cover the whole town with more venues.
The management team said they hoped to increase their running budget from £10,000 to £50,000 to improve the quality of the event.
They emphasised that the festival would still be a free event.