A new 10-year lease is poised to be awarded to the company running Moray Leisure Centre amid hopes it will lead to further savings.
The Elgin complex has faced a troubled time in recent years, struggling to deal with greater competition from other fitness providers.
However, the centre, which is owned by Moray Council but run by Moray Leisure, has had a dramatic upturn in fortunes since the opening of a new gym in April.
During 2018-19, there were about 280,000 admissions to the centre across its swimming pool, ice rink, squash courts and other facilities.
Staff have already recorded more than 245,000 visits during the six months between April and September this year.
Tomorrow, Moray Council will meet to debate whether to award a new 10-year lease for the centre as well as the neighbouring Rainbow Castle Nursery.
In a report, Kim Paterson, the authority’s acting educational resources manager, explained the long-term security will allow management to make further savings to reduce its reliance on subsidies of public cash.
She said: “From both a financial and operational perspective, MLL (Moray Leisure Ltd) continues to strengthen its stability and implement their business plan.
“However, due to the short-term lease they are currently operating under, they are unable to progress on certain aspects of this plan, for example leasing of equipment that will benefit the facility, securing funding and spreading financial commitments over a longer term and negotiating energy deals.
“These issues have financial implications that increase the MLL operating costs and impact on the ability to invest in the facility and operate on as cost effective a basis as possible.”
Break options have been recommended in any new lease to give both the council and the leisure centre flexibility.