Energy supplier SSE is drawing up proposals for the new plant, which will be known as Ferrybridge D, and will have a generating capacity of up to 2,000MW.
It is part of the company's planned redevelopment of the former Ferrybridge C coal-fired power station site, which shut in 2016.
Jim Lawrie, a project development manager for SSE said: ‘The Ferrybridge ‘C’ coal station played a key part in delivering the energy needed to support supply for the UK for over 50 years.
"The development of a new power station at the site marks the next step in our commitment to invest in the area.
"We look forward to engaging with local stakeholders throughout our consultation for this new development."
SSE, which owned and operated Ferrybridge C, will begin consulting on the new Combined Cycle Gas Turbine (CCGT) power station proposals over the coming weeks, ahead of submitting a planning application.
Members of the community will be able to view the proposals, find out more about the project, talk to the development team and provide feedback on the plans.
SSE, which also owns a 50 per cent share in the Ferrybridge Multifuel 1 and 2 projects on neighbouring land, is also finalising plans to demolish Ferrybridge C.
The now-decommissioned power station sat at the heart of the Knottingley community, generating electricity, for half a century before its closure.
SSE announced in 2015 that it would shut the station because the site was deemed to be “no longer economical”. Around 170 company staff worked there at the time.
The company said costs at the power station had been rising due its age and changes to environmental legislation, and it was forecast to lose £100m by 2020.
Demolition work is expected to begin this year - and all structures, including the 198m tall chimney stacks and 114m cooling towers, could be flattened by the end of 2021.