Gloucester City Council will take action to regenerate Bakers Quay if current negotiations are not brought to a successful conclusion.
Questions have been raised over the future of the site after an abandoned warehouse was hit by a suspected arson attack earlier this month.
Negotiations are taking place behind the scenes to finalise a deal to sell the area, which is privately owned by the Bishop family.
But councillors are concerned that this could come to nothing.
The council agreed to action to instigate a Compulsory Purchase Order for Bakers Quay in the event that current negotiations are not brought to a swift and successful conclusion at a meeting of full council on Thursday night.
Leader of the Lib Dem group, Jeremy Hilton, who put forward the motion, said: "It is about time something was done.
"The owners have had some generous offers in the past.
"We have been told about the latest ideas and that it is close to being sold.
"I hope we see a sale that does justice to the buildings on the site and that a scheme is delivered.
"But if things don't happen I think it is about time that this council used its compulsory purchase powers so that we can get something done.
"Otherwise we are in danger of losing these buildings to fire."
Bakers Quay has been left behind by the transformation the Docks has enjoyed in recent years.
It has been included on a hit list of 20 properties which Gloucester MP Richard Graham and city council leader Paul James have targeted for 'real progress' before the Rugby World Cup arrives next September.
Falling masonry, collapsed walls and roofs buckling under rainwater damage are just some of the problems at the complex of 19th Century warehouses at the privately-owned Bakers Quay.
Arsonists are suspected to be the cause of the large fire that broke out earlier this month.
Leader of the Labour group, Kate Haigh, said: "We think this site is long overdue for development.
"The fact is that we have been given some hope time and time again and yet these hopes have come to nothing.
"This fire has been a warning to us of future inaction.
"I hope that whoever does purchase it is able to bring forward the scheme quickly."
The original planning application was granted outline permission by the Secretary of State following a public inquiry in June 2006 with an agreement that it must be renewed after eight years.
It would comprise of the regeneration of current buildings and new builds for housing, a hotel, leisure use and offices.
Leader of the city council, Paul James, said: "There have been negotiations going on for some time.
"I hope they can be drawn to a successful conclusion.
"A Compulsory Purchase Order is not the simple answer that people think.
"it is a lengthy, expensive and uncertain process.
"It isn't a step we should take lightly.
"My preference would be that we bring the current negotiations to a successful conclusion."
