The service in the opposite direction (from Skegness to Lincoln) would continue to stop in the Market Place.
The potential change was revealed in a letter from Stagecoach to Horncastle Town Council.
Mayor Coun Brian Burbidge said the new location was a ‘good idea’ because it would ease congestion in the town centre and West Street.
Councillors heard Stagecoach planned to install a new shelter on Jubilee Way.
Coun Dominic Hinkins welcomed the change and said it was a ‘shame’ buses returning from the coast to Lincoln would not stop on Jubilee Way as well.
Meanwhile, the letter from Stagecoach also contained an apology for what it admitted was ‘poor communication’ about services during the major roadworks on the A158 last year.