Eleven men died when a Hawker Hunter jet crashed on the A27 in Sussex during the Shoreham Air Show in 2015.
A series of memorial sculptures will be installed along the banks of the River Adur, close to the scene.
The designs, which are in the very early stages, will honour the victims and their families, the first responders and the local community.
They include 11 lights which will be lit all day and night, an arch formed of 11 individual arches, "discrete areas of relatively solitary seating" and bespoke oak seats.
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The families of those who died have been consulted throughout the planning process.
Artists Jane Fordham and David Parfitt have been commissioned to design and create the memorial, which will cost Â£180,000 to construct, funded by public bodies and local businesses.
Adur and Worthing Councils' joint strategic committee will consider recommendations relating to financing the development of the memorial on 4 April.
It is hoped the final elements of it will be installed for the third anniversary of the tragedy on 22 August 2018.
A further 13 people, including the pilot Andy Hill, were injured in the disaster.
An Air Accidents Investigation Branch (AAIB) report earlier this month concluded the jet crashed because it was  too low to perform an aerobatic manoeuvre.
Who were the Shoreham air crash victims?
Five different art works are to form part of a permanent memorial to the victims of the Shoreham air disaster.