The proposed improvements form part of wider £45m regeneration scheme for Scunthorpe town centre.
A recent inspection of the markets revealed major upgrades are needed to bring them both up to current day standards, at a cost of around £2m.
Features include a new street-style theme for Ashby Market, while options are still being considered for Scunthorpe Market such as relocating the event to a more prominent location in the town.
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Depute Council Leader Rob Waltham said: "We have been looking at a range of different options to modernise them and get more people buying local and supporting their local markets.
"Relocating the markets will open up more opportunities and provide quality facilities not only for customers but for the hard working traders.
"These proposed improvements would form part of the wider £45m regenerations plans for Scunthorpe and Ashby."
Plans for Scunthorpe's £45m regeneration includes the new Ongo head office, road infrastructure, Humber UTC, extension to Church Square House, new-look Christmas lights switch on and market and specialist lighting for Church Square.
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