A non profit making trust has signed contracts with South Somerset District Council to run Goldenstones Leisure Centre in Yeovil.
According to the council the 10-year agreement with LED will save £210,000 a year in running costs.
Chief executive of LED Peter Gilpin said the first plan was to work with the council to refurbish the fitness suite and renew most of the equipment.
Two leisure centres in Wincanton and Crewkerne are already run by trusts.
Because they have been operating successfully the council decided to adopt a similar model for the leisure centre in Yeovil.
Although LED, formerly known as Leisure East Devon, will take on the responsibility of running the centre, the ownership of the building will remain with the council.
Assistant director health and well-being at the district council, Steve Joel, said: "I am very pleased that the transfer to a trust has now been finalised, enabling significant savings to be made whilst at the same time maintaining the important and highly valued services at Goldenstones."
The transfer has safeguarded jobs at Goldenstones and further improvements have also been planned over the next few months.