The historic Milton House and Shell House – designed by acclaimed architect Harry Seidler – could be partially demolished

A historic skyscraper at the corner of Flinders and Spring streets could be partially demolished to make way for a 32-storey office tower and plaza.

There are plans for a 32-storey development at the corner of Flinders and Spring streets.

Town planners have urged City of Melbourne councillors to reject revised plans for a contentious development at the prominent CBD corner of Flinders and Spring streets.

Under the plans, historic Milton House and Shell House – designed by acclaimed architect Harry Seidler – would be partially demolished to make way for a 32-storey office tower and plaza.

Shops, bars, restaurants, a roof garden and “New York-style pocket parks” also form part of the proposal being considered by the state government.

City of Melbourne councillors have been urged to reject the plan.

The proposed development would include shops, bars, restaurants and a rooftop garden.

A planning advisory committee appointed by the government will meet next month to consider the plans, opposed by Heritage Victoria.

The tower would be built into the void between the two heritage buildings, with a shared podium between the proposed Tower 2 and Shell House.

The revised plans suggest the new tower would be a “friendly neighbour” to three-storey Milton House and 28-storey Shell House, “creating an urban ensemble of contemporary and heritage buildings”.

But councillors at a meeting on Tuesday will be advised not to support the proposal, with city planners saying the amended plans would see the new tower “cantilever over Milton House and the northern plaza”.

“The proposed development will contribute to the erosion and enclosure of a valued publicly accessible plaza, which contributes to the heritage significance of Shell House and provides necessary breathing space,” the planners say.

The new tower would boast a level five whisky bar, a sixth-level “canteen and private dining” space and a fourth-level “flagship restaurant”.

It would have 22 floors of offices, co-working spaces, hospitality levels on floors four to six and a two-level entry lobby.