The Waking the Dragon tower was granted permission by Wrexham council back in February 2011.
Businessman Simon Wingett is trying to raise £2.5m to build the bronze sculpture, cultural centre and gardens at Chirk Park.
Councillors are expected to grant the extension at a meeting on Tuesday.
The 23.5m (77ft)-high dragon with wings spanning 57m (187ft) would stand on top of a 41.5m (147ft) tower at the former colliery site.
Mr Wingett has said the sculpture will rival other well-known landmarks such as the Angel of the North, but time is running out on planning permission for the project granted back in 2011.
He hopes to raise £1m for the visitor attraction from the public, with the rest of the cash raised through loans from Finance Wales and grants from the Welsh Government.
In a report to the council's planning committee, officers say the development would be a "significant tourism draw to the area".
Councillors are recommended to approve the extension allowing Mr Wingett five more years to commence building at the site.
A man hoping to build an 224ft-high Welsh dragon tower on the English border will ask councillors for an extra five years to start the project.