It was announced on Friday, on the eve of this weekend's MotoFest, that a proposed layout has already been drafted and that a feasibility study conducted by circuit designer Driven International has been submitted to the FIA World Motor Sport Council for approval.
A period of consultation will take place involving local residents in the coming months to agree on how the project can be taken forward.
The plans follow World RX staging its first street event in Hong Kong to conclude the 2023 campaign, which was described to Autosport as an “incredibly important” test case that could lead to racing in more non-traditional venues in the future.
Managing Director of Rallycross Promoter Arne Dirks said: "Since being appointed promoter of this championship, one thing that has been clear to us is rallycross’ enormous potential to appeal to new audiences – a point very well-illustrated by the phenomenal success of our inaugural city-centre event in Hong Kong last year.
"That was a real ‘milestone’ moment and has encouraged us to explore further metropolitan locations.
"MotoFest Coventry has solidly established itself as one of the UK’s most popular car-themed events, and after being introduced to James [Noble – Festival Director] and his team, we quickly agreed that we share a common vision – to bring maximum entertainment to as many people as possible in a dynamic downtown setting.
"We are excited to continue working together as we investigate the possibility of incorporating World RX into MotoFest in 2025 and beyond."
Noble added: "MotoFest Coventry is hugely excited to have entered into advanced discussions with the FIA World Rallycross Championship promoter to stage a World RX round at our 2025 festival weekend.
"We have made no secret in the past of our ambition to host competitive motorsport on Coventry Ring Road and having successfully delivered closed-road time trials, we are now driving forward with the next phase of that plan.
"With the ambition to stage exhilarating, electric and sustainably-fuelled racing on our unique city-centre sprint circuit, we are taking MotoFest Coventry to the next level by putting the event at the heart of sustainable motorsport for now and the future.
"This is a massive opportunity to showcase Coventry’s motoring past with a project that will help to secure its future as a city at the heart of transport innovation and development."
The Midlands has a strong tradition of street racing, with the Birmingham Superprix forming part of the International Formula 3000 calendar between 1986 and 1990.
Britain returned to the calendar for the first time since 2019 last year, but its event at Lydden Hill was overshadowed by the paddock fire which destroyed Special ONE Racing's Lancias and prompted an investigation that resulted in the electric RX1e cars being shelved for the remainder of the season.
World RX has for this year launched its 'Battle of Technologies' concept which will allow RX1e machines to race against combustion counterparts using sustainable fuel.
It has also announced a new event format, returning to scoring points during heat races.
The 2024 World RX season gets underway at Holjes in Sweden on 6 July, before taking in trips to Hungary, Belgium, Portugal and a new event in Australia at an unconfirmed venue.
