The lease for the Saltdean Lido is likely to be handed back to Brighton and Hove City Council.
Buckinghamshire businessman Dennis Audley will receive an undisclosed sum for the remaining 111 years on the 125-year lease for the grade II*listed building.
The move follows months of legal discussions between Mr Audley and the council, which owns the building.
A special meeting of the council’s policy and resources committee today (Wednesday 30 May) is being asked to agree the lessee’s offer to vacate the property in return for compensation.
If the offer is accepted, the Lido would be handed back to the council with immediate effect.
The move follows a lengthy campaign by residents, led by Save Saltdean Lido, concerned at the deteriorating fabric of the building and its opening times. They have been calling for the lease to be relinquished.
Rebecca Crook, who chairs Save Saltdean Lido, said: “We wait with baited breath but if this is real and the council are getting the lease back, we’ve done the first part of our job.”
The Lido will not be open straight away because of “legal processes” which will have to be completed, the council said.
But the council is exploring possible temporary arrangements to ensure access is available as soon as possible.
The library and community centre on the site will not be affected.In the longer term the council is likely to put the facility out to tender.
This could mean either a new lessee takes it over, with obligations to ensure that the building and pool are well maintained and regularly opened. Or a contractor may be asked to provide services to an agreed specification.
Councillor Geoffrey Bowden, who has responsibility for economic development and culture, said: “I was determined to find a solution to this longstanding issue and am very pleased that we have.
“It was a very complicated matter, which has been resolved through the dogged determination of dedicated officers working carefully within the constraints of the law and recognising the rights of all sides at all times.
“Local residents have demonstrated the depth of affection there is for this iconic 1930s building.
“Now that the building is about to be handed back to the council, we will be working with the community to find the best way to ensure that this beautiful seaside Lido can be maintained and kept accessible for local people.”
The change is still subject to legal agreement between the two parties.