A planning application has been filed with East Hampshire District Council for refurbishment work to be carried out at the Millennium Centre in Ontario Way.
Bramshott and Liphook Parish Council wants to alter the main entrance to the hall to create a larger administration office.
The work will involve demolishing a wall between the existing office space and the bar.
The parish council claims the bar, which was installed as part of the original brief, now has little or no use.
It says that because of the success of the centre, office space is now restricted and needs to be extended.
The wall separating the two areas is to be demolished, the entrance door to the bar blocked up and the shutter to the bar removed and replaced with a stud wall.
The alterations will affect the windows at the front of the building so new ones are proposed.
The report says: "The application has taken careful consideration and design development to present an opportunity to satisfy the users and the local authority."
A year ago, parish councillors agreed the office and reception area were too small for two staff members and decided to look at restructuring the entrance layout.
Costs, according to an online quote, could amount to £25,000 for the proposed refurbishment.
The figures were discussed by the finance and policy committee and agreed by the majority of its members.
It was noted staff had to be within the foyer area to deal with anyone coming into the centre and could not continue working in the current cramped and draughty conditions.
Councillors felt the office restructure could later be incorporated in the overall refurbishment of the centre at no extra cost and the figure quoted was the maximum to be considered.
The location of the bar has presented problems in the past, when the Canada Room and the main hall - or any other rooms - were hired out at the same time.
Last year the centre secured a ten-year contact from Methodist Amateur Dramatics Company (MAD), who staging their annual sell-out panto there, as well as summer productions.
Other regular users include Liphook U3A as well as Bramshott and Liphook Arts and Crafts Society (BLACS).