Members of West Lindsey District Council are looking to contribute £30,000 towards the project which eventually be repaid through savings made under a new leisure contract.
It is hoped that the balance of money needed will come from the school and the Football Foundation.
Leader of the Council, Cllr. Bernard Theobald said:
"The County Council paid for the artificial pitch more than 25 years ago and the district council paid for floodlights so it could be used by the community in the evenings.
"It continues to be well used - particularly by football teams - but sadly it now reached the end of its expected lifespan.
"The replacement of the artificial pitch will bring hugh benefits to a large number of people in the Market Rasen area. We will be asking the Council to set aside £30,000 in next year's budget and to recoup it from savings achieved over the new five year leisure management contract."