More on KentOnline
Council bosses have taken formal ownership of the former Mecca Bingo building in the town centre.
Ashford Borough Council (ABC) bought the Lower High Street spot last year - and is considering knocking it down to make way for a new development.
The authority took formal ownership of the site on Friday and says it has commissioned "specialist cultural expertise" to look at the business case to turn it into a theatre.
An ABC spokesman said: "The authority is currently taking a range of expert advice to help it consider the options on the best way to use the site to meet various community needs and add to the charm and character of our town centre.
"Surveyors and architects continue to study, among other things, the structural condition of the old bingo club.
"A public consultation on the future development of the town centre has been underway for several months and views submitted will help to shape what happens with the former bingo club site and the wider town centre.
"Once the results of the community consultation and the advice of the specialists on what is feasible are known, the council will be able to take a clear view on the way forward."
ABC says plans for a flexible outdoor performance space are being considered for the site, which could be used for events including markets, performances, live music.
In August, documents showed the authority is looking to flatten the building and replace it with homes, a pedestrian route and bars and restaurants.
Earlier this year, a national theatre company which works to conserve historic cinema buildings told ABC that turning the former cinema and bingo hall site into a theatre represents an "irreplaceable opportunity".
The Cinema Theatre Association (CTA) wrote a letter to ABCin June to object against proposals to demolish the building.
The London-based theatre company conducted a review of the building and said that the council should amend its planning policies in ways that recognise the value of the building.
It argues that ABC should recognise the site as an "important heritage asset of considerable architectural quality" and "explore options to use the fine interior spaces for whatever mix of cultural and community facilities that would best serve the needs of the town".
The architectural caseworker for CTA, Peter Wylde, said: "We believe well-designed cinemas such as the Ashford Odeon are important heritage features in their own right, as is recognised in many other locations.
"It is clear that the Odeon offers Ashford an irreplaceable opportunity to create a good sized arts, music, theatre, and performance space for the town.
"The Odeon represents an important public space which could be used for a wide variety of community and cultural activities, which once lost, can never be replaced."