It will be part of a working group being set up to draw up a plan for the land at Wallbridge near Brewery Bridge.
The move follows a meeting of Stroud District Council’s Strategy and Resources Committee which considered the future of the site.
Stroud District Council is acquiring two parcels of land at Wallbridge as part of Gloucestershire County Council’s agreement to contribute land which would benefit the Council’s canal project.
There have been concerns that the land would be used for commercial development which the Town Council strongly opposes.
Stroud Town Mayor Kevin Cranston says such a decision would be against the residents’ wishes. A retail scheme would be of no help to the existing traders in a town with numerous empty shops.
The Town Council carried out a public consultation about the piece of land with 80% of residents stating that they strongly felt the 0.4 acre area should be public space.
“The Town Council has consistently argued for this area to be a public amenity that everyone can enjoy. It is major gateway into the town and should not spoiled with inappropriate development,” said Coun Cranston.
“Several Town Councillors attended the meeting and I am pleased that the district council has taken our views on board is now setting up a working group so that we can move forward with making this an area which will enhance our town and the lives of our residents.”