Hartlepool Borough Council is hoping to apply for Government cash aimed at regenerating seaside resorts by investing in arts, public space, cultural assets and heritage projects.
The scheme has already seen Blackpool, Dover and Torbay win between £2m and £4m.
In addition to the large grants, there are also 12 allocations of between £200,000 and £1m available in the scheme during three rounds of allocations.
The cash comes from the Department for Culture, Media and Sport and Hartlepool Mayor Stuart Drummond gave council officers the go ahead to prepare the bid when the matter was discussed during a meeting of the regeneration and liveability portfolio.
Regeneration officer Derek Goldburn said it could be more realistic to bid for the smaller funding pot, although officers will look into how open the larger grants are for the town.
The bid could also see areas like the Headland and the marina added to the application.
The application comes after the council's regeneration and planning services scrutiny forum recommended that officials should seek to get cash invested in Seaton Carew in a bid to regenerate the area.
Mayor Drummond said: "Seaton Carew has always been recognised as an area that is in need of investment and the community is calling for it and the scrutiny investigation has been calling for it.
"We said all along that as and when any new funding becomes available we will be putting the case forward and this is an opportunity that we cannot miss.
"It looks like competition will be fierce for this money, if you look at the three that have got it already, they are three popular seaside resorts nationally and I don't think Seaton Carew would rate up there, so I think it is realistic to tie it in with the Headland and marina."
Details of what the money will be spent on have still to be revealed.
Mr Goldburn said it is likely a bid will be prepared for the next deadline in December.