Full plans for the art-deco building will not be released until Monday but the council report has hinted there will be big changes to bring it into the 21st century and help regeneration of the town.
The report says the hall will be refurbished to make better use of the indoor space and broaden the use of the building.
An outdoor performance area will be created if the plans get the go-ahead so the hall can be used for cultural events, such as festivals.
Seafront artwork would include an observation centre at Rossall Point. The report says the Marine Hall needs improvements to create a "vibrant destination".
It adds that the hall is recognised as a "key asset in a unique seafront location."
Chairman of Fleetwood Civic Society Margaret Daniels said: "I would like to see something done with the Marine Hall, it would the fantastic. But I would like to know more before I say any more."
She hoped that the Lower Lighthouse, in need of renovation, could be included in any scheme.
She added: "We have been trying for a long time to get something done but with no success."
The plans are being kept under wraps as Wyre Council is involved in a competitive bidding process to win cash from the Government's Sea Change fund, used to boost regeneration.
Wyre Council can bid for up to £1m of the funding.
The rest of the money needed for the seafront plans would come from the council, or possibly other sources not yet revealed.
Fleetwood seafront would be split into zones under the £2m plans – an idea first used in the town's Masterplan, which was produced in July 2007.
That identified Discovery and Entertainment, Health and Fitness and the Family Quarter as possible zones.
Plans for a residential area were ditched after fierce opposition.
The report will be unveiled at Wyre Council's cabinet at 6pm on Monday.
Improvements would be developed gradually but the first
proposals must be delivered by March 2011.