Abstract: With the decline of growth supremacism, urban renewal has become a primary driver of urban planning, development, and governance. A well-functioning renewal planning system is the foundation for effective implementation. This paper analyzes the positioning of urban renewal plans and the challenges in coordinating them with territorial spatial planning from legal and operational perspectives. It provides a theoretical explanation of the urban renewal planning system using 'institutional change theory'. Based on the degree of system independence and the legal effectiveness of unit plans, renewal systems are categorized into three types: integration, parallel, and substitution. Taking Yangzhou City as a case study, the paper constructs a 'specialized plan–unit plan' renewal system. By dividing renewal units into management units and implementation units—corresponding to district and block-level detailed plans respectively—a framework is formed to vertically transmit renewal needs and horizontally integrate with regulatory plans, offering a path for prefecture-level cities.