Developer Hammerson plans to replace the giant red pyramid structure with a new shopping centre that echoes the original design.
The shopping centre development plans include new spaces for restaurant and leisure operators alongside 200,000 sq ft of retail space.
James Hepburn, development manager at Hammerson, said: “Our proposals will help to kick-start additional investment and development in Midsummer Boulevard and Milton Keynes more widely.”
Hammerson argued it was essential for the city centre to grow to accommodate retail growth,
otherwise Milton Keynes will lose out to other centres, including Aylesbury, Oxford and Northampton.
The developer, which is promoting a clutch of major retail schemes around the country, has not yet released a construction start date.