The Catholic Diocese of Sandhust has approached Greater Bendigo's council with plans for the corner of High Street and Short Street, in the shadow of Sacred Heart Cathedral.

The idea includes a new building and landscaping for public open space, the diocese has revealed.

It would also include a retail space whose flagship tenant will be the Bendigo Chocolaterie and Ice-Creamery.

The company's owners already run similar tourist sites in the Yarra Valley, the surf coast and the Mornington Peninsula, diocese business manager Cameron Fraser said.

"They've got a really good understanding of how to make these types of businesses successful so they are a good fit for the site," he said.

Others expected to move in include office workers connected with both the diocese and Catholic Education Sandhurst.

Artist impressions released by the diocese show a complex that will be four storeys high at the corner of Short Street and the highway, but stepped down to give clearer views of the Cathedral from other vantage points.

Bishop of Sandhurst Shane Mackinlay said the development would enhance the cathedral's status as a cultural lynchpin of the city.

"We believe that we've got the right mix, with commercial tenants that support the project and improve the entrance to Bendigo, as well as providing additional services and amenities to the many people who visit the Cathedral each year," he said.

Some consultation sessions have already taken place with the community and more are expected now that the council is considering the plans.

Bishop Mackinlay said public reaction so far had been encouraging.

It comes several years after plans for a multi-faith "Aspire Precinct" at the site fell through due to a funding shortfall.

The newest plans could address some of the more contentious parts of the defunct Aspire plan, including a lack of car parking.

"The parking is now included in the building," Mr Fraser said.

That includes about 35 spaces that people will be able to enter from Short Street.

The current building at the site has been empty since the Aspire plan fell apart.

Before that it was a paint shop.

Building works on the site could be completed as early as 2026, assuming planning authorities sign off on the plans fast enough, the diocese says.

This story was updated by 4pm with additional details about the build and comments from Cameron Fraser.