Costa Coffee has lodged plans with Durham County Council to open a branch on Church Street.
The scheme is still at an early stage but if it is approved the business is to move into an empty shop which once held Brooks Photography.
Councillor Trish Pemberton, county councillor for Shildon, said: “It’s great that Costa’s thinking about coming to the town.
“It will help to promote the town and it’s very positive news.”
Tracey Bellas, deputy town clerk for Shildon, said: “It’s fantastic that it’s coming to the town and it will improve the main shopping street in Shildon.”
Costa Coffee already has a unit in St Helen Auckland, near to Shildon.
A Costa spokesman said: “We are currently evaluating opportunities in the Shildon area, but have no definitive opening confirmed at this stage.
“We work closely with planning departments to open stores for the benefit of communities, creating new jobs and providing attractive and popular social meeting places.”