North Lanarkshire Council and the Cumbernauld Theatre Trust have revealed plans to create a 400-seat performance venue in the town.
The new facility would replace the existing Cumbernauld Theatre building, which is in need of major upgrading.
It will be located at the new Cumbernauld Academy building, allowing pupils to have access for drama and dance classes.
Councillor Jim Logue, the council's convener of Learning and Leisure Services, said: "This exciting development will give the people of Cumbernauld a facility of national significance and go a long way to matching the group's ambitions."
Ed Robson, artistic director of Cumbernauld Theatre, added: "Our current building has served us well over many years but the time is right to move."
Cumbernauld Academy was created following the merger of Cumbernauld High and Abronhill High.
Mark Cairns, head teacher of Cumbernauld Academy, said: "This is such an exciting development for pupils, staff and the community and provides a fantastic opportunity for the school to develop a strong arts and culture specialism."