The council has held talks with the Strategic Rail Authority, Railtrack, and the Greater London Authority's Transport for London, as well as with private companies operating train and tram services into the borough. It is hoping to redevelop a 5 ha site that houses separate rail, bus and tram stations.
It is likely that West Croydon will improve its links to London by becoming a terminal station for the extended East London underground line. It will also be on the new Thameslink 2000 rail link.
A council spokeswoman said: "In East Croydon we have a brand new station, but West Croydon hasn't had a major facelift since it was built in Victorian times."
She added that the station development would play a part in the regeneration of the borough. It likely to be co-ordinated with the surrounding retail outlets and business space nearby.
A new shopping centre, Centrale, is being built within walking distance of the station and the council is hoping that the transport hub will encourage more visitors to the mall.