Bow Street station closed as a result of the Beeching cuts in 1965 and since then a number of people have campaigned for the stop to be reinstated.
The proposed new station would be built a short distance south of the original location, which is now the site of a builders' merchants.
The scheme includes a park and ride facility for 100 cars.
Councillor Alun Williams, cabinet member for transport, waste and carbon management, said it was a "very exciting idea" with "strong support" from the public.
"Not only will this scheme provide Bow Street and surrounding communities with a railway station but it can also help alleviate congestion and parking problems in Aberystwyth," he said.
Outline drawings of the new station will be on show at a public event, organised by Ceredigion council, at Neuadd Rhydypennau on 11 July between 14:00 and 17:00 BST.
A railway station could be returned to a Ceredigion village for the first time in more than 50 years.