Campaigners trying to save a Derbyshire landmark are set to be offered the building's lease.
The future of Matlock Bath Pavilion has been uncertain while Derbyshire Dales District Council looked for tenants.
A large part of the hundred-year-old building has stood empty since a nightclub closed in 2008.
Matlock Bath Pavilion Group is to be given a three-year lease, with an option to buy the freehold for just £1, dependent on making £2m of repairs.
The community group has already published details of a plan to install a 400-seat theatre while keeping an existing mining museum, community centre and playgroup.
A council spokesman said: "While this grand old building is surplus to the district council's needs, we absolutely support the idea of giving the local community the opportunity to give it a new lease of life without risking other public services."
The group has set up The Grand Pavilion Ltd to allow it to oversee the renovations and restorations, and then run the building as a Charitable Trust.
A spokesman said the group was very pleased with the council's decision and were confident of raising the necessary funding.
A formal decision will be taken by the council on Thursday.