Ballymote has been selected for the next round of Town Centre First Plan.
Tubbercurry has already been selected for phase 1 and Ballymote has been announced for phase 2.
The Government initiative aims to tackle vacancy and dereliction in more rural towns and villages.
Fianna Fail Local Election Candidate Keith Henry says both the local community and businesses will be consulted as part of the process.
He feels that both Ballymote and Tubbercurry have the potential to become key satellite towns for Sligo: