A scheme has been lodged with Durham County Council seeking approval to convert the old Jubilee Fields Working Men’s Club.
Applicant North East Property Developments, of Newcastle, wants to create two retail units, a takeaway and a storage unit.
But the plans have stirred up anger amongst some residents.
Councillor Peter Quinn, a former mayor of Shildon and the current deputy leader of Shildon Town Council, said he is "totally opposed" to the plan.
He said: “I am going to fight this as there is no way that we are going to have this. We want shops in Shildon to attract people, not more takeaways.”
Since the working men’s club closed the building on Jubilee Road, called the Jubilee Fields Training Centre, was the base of S&D Training.
It is empty now but located next to the Jubilee Fields Community Centre.
A spokesman for the community centre said: “We get funding to promote healthy eating so it would have been better if it had been something other than a takeaway.
“There is a fish and chip shop on the estate already plus loads of takeaways on Church Street.”
Joanne Harwood, of Jubilee Road, has written to the county council to oppose the plan.
She said: “There are already numerous, in access of ten, hot food outlets within walking distance locally as well as other shops and supermarkets all selling hot foods.
“How can this warrant yet another fast food outlet when we as society are supposed to be promoting healthy living and lifestyles but then sanctioning yet another fast/junk food outlet?”
She also has concerns about the takeaway attracting anti-social youngsters.
The site is 0.17 hectares in size and the plans will create 20 jobs if they are approved.
It is expected that the shops will open between 7am and 10pm Monday to Friday and from 8am to 6pm on Saturdays.
The take-away element will open seven days a week between 5pm and 11pm.
Shildon Chamber of Trade declined to comment until its members had studied the plans.
Michael Pittuck, agent for the applicant, said: “The client is looking to get four new uses into that building.
“We drew up a plan for the building which spilt it to the client’s needs. I’m not sure what the client’s intentions are for the site exactly.”