Plans for a £30m community and leisure centre in Leeds are back on track after being suspended last year.
The Holt Park wellness centre was one of a number of Labour-approved projects put on hold by the coalition government pending financial review.
However, the Department of Health announced that it would honour the commitment to fund the centre through a private finance initiative.
It will replace the existing Holt Park leisure centre.
The proposed project from Labour-led Leeds City Council will feature a garden, swimming pools, health facilities, community meeting areas and a hub for older people.
Labour councillor Lucinda Yeadon said: "We are still waiting to hear the full details of the government's support for the project but once we do the plans can progress accordingly."
Greg Mulholland, Liberal Democrat MP for Leeds North-West, said the Holt Park area has "been in desperate need of redevelopment".
"The news that the well being centre has been given the go ahead is a huge boost for the whole area," he added.
Conservative council member Barry Anderson said the new leisure centre could attract private sector investment.
"The area is in need of regeneration and this centre will be the catalyst for that," he said.