Post office staff and parish councillors have said a deal could still be struck to keep a post office in Pannal.
An agreement between the land owner and the post office staff could be signed if approval is given for plans for development of the former Dunlopillo site by Harrogate Borough Council's Planning Committee an tomorrow (November 7).
Manager Steve Willis has said talks between himself and the owner of the land at Station Road could result in a five year contract being signed if the reserved matters applications is successful.
Mr Willis said: "I have to say first that things could go either way but things are looking positive. We have had discussions with them and they are dependent on the outcome of tomorrows meeting.
"We have been offered five years but this has not yet been signed off yet, we only currently have an agreement in place for November.
He added: "For us to get to this point is in no small part because of the Parish Council, along with the support from residents that we are so grateful for."
Initial plans for the development were to demolish the post office, however these have now changed with proposals for a road re-alignment which means this would not be necessary.
If approved the post office will be retained, although plans suggest it could later be relocated once a replacement unit is made available on the new development. A new building would then replace the existing post office according to planning documents.
More than 300 comments were sent into object to the original application for the site, 200 of them flagging concerns over the loss of the post office.
Two applications are to be considered at the committee, both are reserved matters and split between the residential and commercial proposals for the site.
Pannal and Burn Bridge Parish Councillor, Howard West said: "The idea is to keep the service in place, which is essential for the village. and due to the work between officers and Councillors, including John Mann and Cliff Trotter."
More on this following tomorrow's committee meeting.