Lamb Weston/Meijer, part of the £7bn ConAgra empire operating in 34 countries, expects to spend about £20m on the nine-storey-high building.
The company aims to build the factory next to its existing one in Wisbech and to include cold-storage areas for potatoes and potato products. The firm produces beer-battered fries, potato wedges and other foods.
The site, located on an industrial estate, is about the size of four football pitches, and the building will cover half of that land area.
A representative for Fenland District Council said it was too early for a planning application or to give proposed building dates.
But leader of Wisbech Town Council Roger Green said the area was missing a big industrial proposal and the new design "could be the icing on the cake".
Green was one of a five-strong team to visit the Lamb Weston/Meijer site in Bergen op Zoom in the South of Holland.
He said of the new proposal: "Talk is not about if they come to Wisbech, but when."