Douglas Council says it wants to create a covered waste transfer facility in Braddan.
The local authority has applied for permission to build the unit at its operations centre on the Isle of Man Business Park.
In its application, the council says it currently uses the area to deal with its recycled materials such as glass and aluminium.
However, it says the old station is only partly covered and wants to build a new unit so workers don't have to work outside in all weathers.