Redcar and Cleveland Borough Council are considering the use of a Traveller Pitch Funding grant which has been secured from the Homes and Community Agency (HCA).
The consideration comes after councils were invited to bid for their share of 60 million pounds worth of funding from the Government's national housing and regeneration agency.
Over £850,000 has been secured by the Council to carry out improvements to its permanent residential Gypsy and Travellers site at South Bank.
The work will include creating five new pitches, increasing the current number from 13 to 18, as well as carrying out improvement and refurbishment works.
Warrenby household waste centre near Redcar will close on 15th April 2012 as part of a number of efficiency savings proposed by Redcar and Cleveland Council.
From Monday 16th April residents can still take their waste and recycling to the Dunsdale site which is centrally located within the borough and with access from the B1269 Yearby to Guisborough Road.
The Dunsdale site will extend its opening hours as a result of the Warrenby closure.