Skelmersdale could get two direct trains to Liverpool per hour and an hourly service to Manchester, Councillor John Fillis said.
Lancashire council has a Â£1m fund to develop a more detailed proposal with Network Rail and Merseytravel that could eventually cost under Â£4m.
Mr Fillis said the planned station would "extend the opportunities available to local people".
He added the proposal could be Lancashire's largest bid for the government's Growth Deals, which provide money to local enterprise partnerships (LEPs).
"Our initial feasibility study shows that connecting Skelmersdale to the rail network should deliver good value for money."
The rail link is part of a "wholesale reconfiguration" of the town's transport network, which aims to improve bus services, cycling and walking links, he said.
A West Lancashire town could get a rail station as part of new transport plans.