The decision will be taken at a meeting of the Environment Committee on Wednesday 30 January 2013.
The Inches are public parks which define the north and south boundaries of Perth city centre.
The first phase of regeneration works saw the former boating pond transformed into a haven for wildlife.
The focus for the second stage will be on the play facilities and surrounding environment.
The Committee will hear of plans to provide a new play area on the parkland which had previously been occupied by the former crazy golf, trampoline, putting green and bowling greens.
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The play facilities have been designed to reflect the upgrades recently undertaken in many of the Council's key parks, including MacRosty in Crieff, Victoria in Aberfeldy, Kirkgate in Kinross and Larghan in Coupar Angus.
There are also plans to link the new play area in with the former bowling pavilion, with the design also providing an opportunity for interested organisations or groups to bring the pavilion back into use.
£574,000 has been set aside in the Council budget for the second phase, with councillors expected to request formal approval from the Perth Common Good Fund for the proposals.
Provided planning permission is granted, the improved play area could be open in late Summer 2013.
Environment Convener, Councillor Alan Grant said: "Creating a new, high-quality play area for children and young people of all ages on the South Inch will build on the improvements we have already made to this unique and defining feature of Perth city centre. The South Inch is already a popular place for leisure and recreation and taking forward the second phase of this upgrade project will add a further attraction to Perth for residents and visitors alike."
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