Retailer Argos has committed to its flagship store in the city centre after plans suggested its lease on the site may not be extended.
Developers hope to refurbish and extend the site where the shop is based in Lower Parliament Street, with the idea to create student accommodation with 273 bedrooms.
Officials behind the plan said that 23 studio flats were specifically proposed across the floors above Argos.
However, a report in the planning application suggested the future of the shop might be in doubt.
A planning statement read: "The original Lombard House building was constructed in 1900 as a wholesale fruit store and subsequently used for many years as a motor dealership and showroom.
"A single storey rear extension was added in the 1970s used as a workshop and store associated with the motor dealership.
"Latterly the buildings on the site have been used as a retail unit by Argos.
"However Argos’ lease is shortly to expire and they have indicated they do not want to regear or extend their lease at present.
"The business is accelerating the integration of Argos into existing Sainsburys stores and a reduction in the number of standalone retail units they occupy. The site will therefore become vacant in the near future."
However, when this statement was put to the retailer, Argos disputed the claims made in the planning documents and confirmed it was committed to the site.
A spokeswoman for Argos said: "We’ve shared no plans to close our store."
By refurbishing and extending the site, developers hope to create an outdoor courtyard space and café.
If given the go-ahead, the plan would involve an existing warehouse section to the back of the Argos building being demolished.
An extension is to be knocked down so a new building can be constructed.
James O’Brien, head of planning at Bmor, the developer behind the plans, said: “We are delighted to have submitted the designs for Lombard House to Nottingham City Council as this development will rejuvenate an area of Lower Parliament street in need of investment.
“The plans create an appealing new setting for residents and the public alike thanks to the courtyard and café space and will subsequently breathe new life into this underutilised site.”
Argos' former store in the Broadmarsh Shopping Centre closed a number of years ago - as the retailer opened in the Sainsbury's supermarket in Castle Boulevard.
Meanwhile, Argos facilities will also operate from a long-awaited Sainsbury's store off the A612 Colwick Loop Road.
