The North Hill Sears store could become the site of a major residential and commercial development.
Sears Canada has entered into an agreement with Concord Pacific to develop the 12-acre site.
The plan includes residential highrises with potential for more retail development.
Sears said it plans to continue operating at the site during construction.
In a written statement, the company said the deal is in its early stages and there is no guarantee at this point that the project will go ahead.
Completion of the development depends on a number of factors including the economic value to the company, obtaining approval from the City of Calgary, taking into account any shifts in the Canadian economy and the state of the Calgary real estate market.
The North Hill Sears store opened in 1958.