The £7m project is designed to ensure more fish is processed in Newlyn rather than being sent outside the UK.
Currently 80% of the fish landed in Newlyn goes straight to continental Europe for processing.
Tony Woodhams, Newlyn Fisheries Project Officer, says a new market with units for processing would add considerable value to the catch in the port.
He says the present building is expensive to keep cold and a new one would be easier to maintain.
Outline planning permission will be sought next month.
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