Hereford BID is proposing the event as part of its plans to boost Hereford over the next five years.
Chief executive Mike Truelove said: “We do not have many details yet on the Medieval Festival other than our intention to do this in 2026, but overall the idea is to create a really fun festival that is heavily experiential.”
The body will meanwhile continue backing other city events including the Hereford City Life Presents summer music programme and Applefest in autumn, which promotes the area’s cider heritage.
The BID also plans a new digital strategy to attract regional visitors, and to work with partner organisations to promote Hereford as a place to visit and stay the night.
“A day tourist visit brings in roughly £28, whereas a two-day stay is £120 – money that will find its way into the local economy,” the BID’s proposals say.
The “pedestrian gateway” of Eign Gate will be made more welcoming with better lighting and signs. Last year the BID led a campaign to address anti-social crime in the street.
It now plans an annual security conference, also from 2026, for those with a stake in the city’s safety.
With more than 90% of levy payers backing continued support for the BID, the body expects to take £340,000 in the next financial year, rising to £368,000 by the end of the decade.
With other sources of income, its total budget across the five-year period will be just over £1.9m.
Among levy payers backing the BID’s plans is Herefordshire Council, which will initially pay in £32,085 on the 31 business properties it owns in the city.
“There are benefits to Herefordshire Council and businesses from the continuation of the BID,” a record of the council’s decision said.