Folk music fans could be flocking to Bognor Regis next autumn.
A free one-day festival has been agreed in principle by the town council.
But councillors said the proposal should be looked at again by the events, promotion and publicity committee for details to be agreed before a final decision is made.
The festival would be held at the end of next September with a well-known headline act supported by local bands.
Cllr Roger Nash said the event would recall the Southdowns Folk Festival some 20 years ago which drew 4,000 spectators.
He said: “That brought a lot of money and tourists into the town and it ended up breaking event. This will be a one-off and I am quite confident it will be successful.”