A report to the council's Executive Board next week outlines the council's proposals and identifies Sovereign Street as a potential site for the new park.
It also proposes to identify sites south of the Aire to create further green spaces in the city.
Cllr Martin Hamilton (Liberal Democrat, Headingley) who chairs the City Centre Plans Panel said:
"I am delighted that the council is proposing to create a new city centre park on Sovereign Street.
"Given the rapid development of the city as a place for people to live over the last decade, we are conscious of the need for more green space in the city centre. This and other initiatives will go a long way to meeting this objective."
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