Plans are underway to turn part of the Marsh Road site, closed since 1985, into a facility which would serve Rhyl, Prestatyn and Rhuddlan, after Denbighshire County Council's controversial plan to build the centre near Rhuddlan castle was blocked.
A council spokeswoman said: "The council has looked at the remaining alternative sites and is considering the use of part of the former landfill on Marsh Road, Rhyl, for the much-needed new recycling facility. "If investigation work goes to plan, the council is hopeful it may be able to make a planning application for a recycling park at the Marsh Road site before the autumn. There will be full consultation with local residents before any final decisions are taken."
If the centre goes ahead sites in Rhyl and Prestatyn, which have been described as out-dated and not meeting Environment Agency standards, will be closed.
Rhyl Town Cllr Pat Jones has some concerns about the plans but believes the site could be a success.
She said: "It is a residential area, and plans would need traffic calming measures, we have two schools and two supermarkets in the local vicinity and a lot of traffic at school closing time.
"We have been assured that there would be no plant making compost on site because of the smell. On the plans that I have seen it looked very good, but my concerns were traffic and the smell generated by compost."
An application by the council has been made to dump 38,000 tons of rubble to stabilise the area before the centre can be built.
Cllr Jones added: "We have always had the tip down Marsh Road and if everything is put in place correctly it will be better for recycling than the tip.
"I hope the residents will be consulted and the traffic problem be sorted out. I will be keeping an eye on this and the council wont be able to do anything without consulting us."
Marsh Road resident Marie McMonnies, 62, is against the plan, because it increased the volume in traffic.
She said: "The traffic is the main issue, we have had to put up with traffic going to the tip for many years. Residents down here are sick of picking up rubbish that has fallen of cars going to the tip and with this it will increase."