Wolverhampton City Council (WCC) has paved the way for the establishment of a new in-house leisure trust, which will take over the operation of the council-run facilities.
Aldersley Leisure Village; the new Bert Williams Leisure Centre; and Central Baths are the venues that will be managed by the trust on behalf of the local authority.
It is anticipated that the new trust will help WCC to reduce costs by around £400,000 each year, with the trust able to benefit from relief from VAT and business rates.
WCC cabinet member for leisure and culture Elias Mattu said: "The establishment of a leisure trust will enable us to further develop our already high-quality leisure facilities by reinvesting any profits made back into the services."
Wolverhampton Swimming and Fitness Centre will continue to be operated by DC Leisure regardless of the latest announcement.