A crematorium and cemetery could be built on a 20-acre site near Great Glen.
The Co-op is behind the proposals for farmland between London Road and the A6, just south of the village.
The project aims to tackle the shortage of crematoria and burial sites in south Leicestershire.
A two-day public consultation event will be held this month when residents will get a chance to look at plans, which include a woodland burial site, and talk to representatives from the developers.
No planning applications have yet been submitted to either Harborough District Council or Leicestershire County Council.
Harborough district councillor Kevin Feltham said: "I've been aware they have been thinking about this for several months. But, as far as I'm aware, they haven't spoken to the highways department at the county council yet, and I know from previous applications that plans can become unstuck when they come against highways."
In 2010, plans to build a crematorium and memorial gardens on the opposite side of the A6, a few hundred yards from the latest proposed development, were scrapped.
A number of other failed bids followed in other parts of south Leicestershire, including plans to build a crematorium in Countesthorpe last year.
Harborough District Council has admitted the need for such a service in the area.
A spokesman said: "The core strategy acknowledges a need for additional burial provision and the potential for a local crematorium."
Coun Feltham said that should the latest plans to build the site in Great Glen be rejected by planning officers, there could be an alternative close by.
He said: "We've come up with another proposal for some county council land which might become available between Countesthorpe and Great Glen. It would be less likely to cause as much concern as possibly this one."
A spokesman for Great Glen Parish Council said it had been approached by the Co-op and told the plans were at their very early stages. He said: "The parish council will be discussing this outline proposal at their meeting next Tuesday."
Teresa Cook, planning manager with the Co-operative Group, said: "We would very much like to hear residents' views, that is why we are organising a public consultation.
"Our intention is to liaise with residents before we submit our plans to the council."
The public consultation will take place in Great Glen village hall, in Main Street, on Tuesday, July 16, from 3pm to 7pm, and Wednesday, July 17, between 10am and 2pm.