The $500 million development is earmarked to replace a car park immediately south of the Myer building, which is currently identified as a rendered cream wall.

It is the biggest non-retail extension ever pitched for the Malvern East centre, which officially opened in late 1960. The Chadstone complex now includes 530 speciality shops as well as major department stores.

The first significant swathe of office space was built into the complex about three years ago, and now acts as the headquarters of local businesses JB Hi Fi, Sportsco and Boost Juice.

A CFS spokesperson would not comment specifically about the proposal while it is being reviewed at council.

Council was unavailable for comment when contacted by this reporter, but is expected to make a formal announcement later this week.

Elsewhere in the area, in Caulfield East, Matthew Guy recently approved a $1 billion redevelopment which will add apartment towers, shops and offices to land on the fringe of the Caulfield Racecourse.