Wodonga Council has confirmed the land on Jack Hore Way and next door, an enlarged green space area fronting High Street, is the "proposed" replacement site for the cinema.

The cinema has been bumped from the Elgin Boulevard and Smythe Street corner in favour of a proposed Dan Murphy's bottle shop and secondary retail building.

The proposed move has erupted on social media with residents opposed to another booze outlet and fearful the cinema won't come to fruition.

The council clarified its role in the Dan Murphy's development on its Facebook page late on Monday.

"The cinema development remains a key part of the overall development and in the plan for the site, which is presently being refreshed, it is now proposed off Jack Hore Way where the temporary car park is located," the post said.

"The site is owned by the state government agency Development Victoria, which has entered into a development agreement with a private developer (Clinton Williams).

"The council is not developing the site and its only role remains as a responsible authority in the assessment of planning permits."

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A Wodonga Council spokesperson confirmed a cinema on the temporary car park site would trigger the need for a fresh planning application.

The temporary car park site completed last year was originally intended to be a multi-storey office building.

Developer Jason McPhail had plans for the conversion of shops and derelict warehouse to six food and drink outlets on Jack Hore Way approved by Wodonga Council recently.

Business Wodonga chief executive Graeme Jenkin had reservations about another large scale liquor outlet in the city and the latest uncertainty about a cinema.

"We always welcome retail development in Wodonga," he said.

"But we question the need for a liquor store ahead of a cinema which we believe would have had far greater positive impacts for central Wodonga in terms of further activating the city's night-time economy with somewhere to go for entertainment.

"The night-time economy has so much capacity to grow way beyond the sterling offering of the existing businesses in that space.

"The other worry with a large liquor outlet coming in is the impact on the existing hotels and bottle shops that have been part of Wodonga for such a long period of time."

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