Garstang's new town square looks likely to be christened "Cherestanc" when it is formally opened later this summer.
Cherestanc is thought to be the Anglo-Saxon name of the town when it was listed in the Domesday Book after the Norman invasion of 1066.
The spelling and pronunciation changed over the centuries, with variations including Grestein, Gayrestan and Gayrestang, before eventually eventually becoming Garstang.
Town councillors selected the suggestion from dozens sent in to The Courier as part of a competition run in conjunction with the council to find a suitable name for the square being created outside the £6m new Booths store.
Cherestanc was suggested by a number of the competition entrants, with other popular names including Fairtrade Square, Bowland Square and Entente Florale Square.
The Cherestanc suggestion will now go forward to Wyre Council's street naming unit for final approval.
Garstang town clerk Edwina Parry said: "It was one of the most popular suggested names in the contest. Councillors thought it would be the most appropriate name because of the heritage and history attached to it."
Meanwhile, work on the square has started. Booths' main contractor MBMC is carrying out the creation of the square between Rope Walk and the new store.
The project, which is set to open in late summer at the same time as the new store, will involve highways work on Park Hill Road by Lancashire County Council. This is due to start mid-July.
A Wyre Council spokeswoman said: "Booths is also carrying out works to re-pave Rope Walk and Stoops Hall Weind. Work will be starting in July"
l Garstang residents wanting to spend a penny in the Park Hill Road loos found them closed, cordoned off and then demolished.
The free-of-charge Wyre Council-run loos were closed and the replacement pay toilet facilities opened immediately next door at the Booths site.
But the lack of advance information explaining the changes and the introduction of the 20p fee caught some residents and shoppers short.
A council spokeswoman said: "Although with hindsight, posters may have proved useful to some people, the priority in such a short space of time was to ensure everything was right with the toilets themselves.
"The new toilets were opened during the afternoon of Tuesday June 16 and the old ones were not closed until the afternoon of Wednesday June 17, once it had become apparent that there were no teething problems with the new units."