Peterborough City Council proposes to evict the Crown Post Office from its Corn Exchange base so it can pull down the building in Church Street and replace it with a public square.

A council planning committee is due to rule on the scheme at a meeting tomorrow, but will come up against stiff opposition from a Post Office delegation.

Company officials hope to convince councillors to reject the proposals because no provision has been made for an alternative base in the city if the office is forced to close.

A Post Office spokesman said: "We will be formally objecting to the council's plans to demolish the Corn Exchange building when it goes to committee on Tuesday.

"Our priority continues to be the retention of a Crown office in the city centre for our customers and the council's plans were drawn up without consideration for the relocation of the office."

Last week, The Evening Telegraph revealed the city council's plans to extend Cathedral Square into a huge public open space featuring fountains, lawns, benches and trees by 2010.

A large part of that scheme involves the demolition of the Corn Exchange, which has housed Peterborough's main post office for 40 years.

If councillors approve the scheme tomorrow, the post office could be forced to move out on Christmas Eve, along with the building's other tenants – off-licence Bin Ends, The Square hair salon, Bairstow Eves estate agent and Quest Employment.

Although Post Office officials are in talks with the council about relocating to an empty shop in nearby Cowgate, no deal has yet been struck.

It is believed the two parties are in continued disagreement about the amount of compensation the council should pay to help with any forced relocation.

Liberal Democrat councillor Darren Fower will also be opposing the application at tomorrow's meeting, having persuaded hundreds of people to sign a petition protesting against the plans.

He has called on the planning committee to rethink the application and make sure the Post Office is given enough help to find a new home in the city.

He said: "This post office is a thriving and prosperous business, and the city council has a duty to ensure it is protected, but we know very little about what plans the council has for its future.

"The council cannot be allowed to act like a bull in a china shop and demolish the Corn Exchange without sufficient provision being made and help given to relocate the Post Office.

"I hope the planning committee listens to the Post Office's objections and can come to a sensible agreement about an alternative venue without any jobs being affected."