The Severn Valley Railway (SVR) plans to construct a new station building in Bridgnorth and restore the existing 1862 building.
Last month SVR completed a £250,000 refurbishment of the track between Kidderminster and Bridgnorth, including Bewdley Tunnel.
The plans for Bridgnorth also include a new information and exhibition area.
Nick Ralls, general manager of SVR, said: "Most of our passengers begin their journey in Kidderminster and head north to Bridgnorth. We want a fitting destination for them to arrive at."
He added that the station, which reopened in 1970, had not been designed to cope with the line's 250,000 visitors a year.
Mr Ralls said he also hoped to open up Bridgnorth's steam works, where volunteer staff repaired historic steam engines, for other heritage lines across the country.
SVR also plans to build new facilities for its volunteers, including accommodation, showers and a kitchen.
Artist's impressions for the £2m revamp are expected to be ready by April and the initial work could be completed by 2015, he added.
The proposals are part of a 10-year project to bring the line and its stations up to date.
A heritage railway line has announced plans for a £2m revamp of a Shropshire station.