Council chiefs are considering the move following a meeting with local traders this week to discuss how to improve trade in the town centres in the light of the current economic crisis.
High on the agenda was the subject of parking charges and a package of parking charge reductions was proposed and widely accepted.
The decision, which will see parking charges on short stay car parks in St Annes and long stay car parks in St Annes and Lytham drastically reduced and parking time limits increased, must now go to a meeting of full Council on 24 November.
It is believed that stays of over 2 hours in short stay car parks could be reduced by up to half the current price - although other options are also being looked into.
Coun Tim Ashton, Cabinet Member for Environmental Wellbeing said: "The meeting went very well and previously tense relationships between the Council and traders seem to have been resolved and we are now fully in the spirit of working together to improve the situation.
"We are very pleased that they have accepted the proposals for reductions in parking charges and we will now wait for a final decision to put the changes in place by full Council at a meeting in the coming weeks."
Marc Whitehead, from Lytham Chamber of Trade, said: "It was a very very positive meeting.
"We just have to wait for the decision but obviously we're hoping that they will be reduced because we want people to come and park in Lytham."
Representatives from Lancashire County Council also attended the meeting and agreed to also look into on street parking charges subject to a survey carried out locally.