The idea was suggested by M&S officials at an hour-long meeting with council leaders and local MPs Andrew Percy and Nic Dakin yesterday.
It came after the retail giant last week announced it planned to close the Scunthorpe store which it claimed have become commercially unviable. North Lincolnshire Council leader, Councillor Mark Kirk, said: "M&S has invited the council and the MPs to put forward their ideas to help retain the company's presence in Scunthorpe.
"So we will in the coming weeks be putting together a package that will show we can offer our support to make the store more viable and help attract more visitors to the town.
"M&S probably is not aware of the planned developments for Scunthorpe and surrounding area that will undoubtedly attract more shoppers to the area."
Mr Kirk declined to comment over whether the rescue package could include an offer to cut the business rates on the High Street store, which dates back to 1932.
After the meeting Scunthorpe's Labour MP, Mr Dakin, said: "The town has tremendous potential for economic growth which we are already starting to see.
"I understand M&S is a profit-making business and it doesn't take these decisions lightly but it would be a real shame to see it close.
"It's been here a very long time and people have a good relationship with the store and the staff."
Brigg and Goole's Conservative MP, Mr Percy, said: "M&S gave an assurance that it would consider any viable concrete counter proposals before making a decision to close.
"At least we've been given a chance to air our views and I would encourage others to do the same."
Store insiders have told the Telegraph the London-based firm, which owns the High Street property, has refused to upgrade the 78-year-old building and is charging higher than market value for the lease.
M&S has declined to comment on the claim.
A spokesman for the company in London said: "We won't be commenting on the meeting, other than to say it was arranged as part of our ongoing consultations concerning our proposal to close the store in the new year."
Get involved
TO urge Marks & Spencer to reconsider its closure plan, customers in Scunthorpe are being urged to write to: Retail Customer Services, Chester Business Park, Wrexham Road, Chester, CH4 9GA. Telephone 020 7935 4422 or e-mail retailcustomer. services@marksandspencer. com Alternatively, email M&S chairman Sir Stuart Rose at chairman@marksandspencer.com