Omagh may provide refuge for up to 20 Kosovo families following an emergency motion due to be discussed at a meeting of the district council tonight.
The Co Tyrone town was the scene of the worst atrocity of the Troubles when a "Real IRA" car bomb exploded last summer, killing 29 people and injuring hundreds.
"The world was very good to us in the wake of our tragedy and we would like to give something back," said SDLP Omagh town councillor Mr Patrick McDonnell.
Mr McDonnell, who is behind the move to bring the ethnic Albanians to the town, said yesterday he was prompted into action after watching television footage of the "tragedy of Kosovo and the dreadful refugee problem".
"We may only be able to make a small difference, but I believe it is better to light one candle than to sit and curse the darkness."
The council's chief executive, Mr John McKinney, described the move as a "positive and humanitarian gesture". Representatives from all the parties, including Sinn Fein and the Ulster Unionist Party, assembled for an ad-hoc meeting on Monday night and all present were in favour, he said.
"Obviously we can't do it on our own, but we are prepared to co-ordinate it locally," added Mr McKinney. The council envisages an integrated agency approach with local voluntary and charity organisations involved in housing and caring for the families.
Ms Anne O'Reilly, spokeswoman for Help the Aged of Northern Ireland, said the pictures coming from the border areas of Kosovo were "very emotional" and she urged a co-ordinated campaign of aid for the refugees.
According to Mr McDonnell, the families would not be housed together in a compound. "We want the people to come to where they will feel at home so there is no question of any kind of compound. We want them to have their own space so they can recover from the dreadful trauma they have suffered."
A British Home Office spokeswoman said yesterday discussions are being held with some local authorities should housing be needed for refugees.
However, she added that no firm plans had been made on how many refugees would enter Britain or where they would stay if the decision were taken to grant entry.
Omagh was the beneficiary of a huge co-ordinated appeal in the wake of the August 15th bomb attack. Over £3 million has so far been raised to help victims.