Up to 1.8 million pounds is to be invested in new sports centre facilities on the former Lee Manor site.
Liverpool City Council is to choose between the best two plans for the site. Both are for sports centres - one will see the old building renovated, the other will involve a new build.
The final go ahead is due to be given later this spring, and work will start shortly afterwards.
Says Lib Dem Campaigner Peter Rainford "This is great news. We said we would work to get modern sports facilities for the area - now we have."
The Lee Manor site has been the subject of much misleading gossip in the past. Former labour party leaflets tried to scare local people by claiming firstly that the site was going to become a "boot camp" and then by saying there were plans to site an incinerator there.
Local Liberal Democrats have pledged to keep people informed as the development continues.
The existing Valley Community Theatre will be unaffected by the sports centre plans, which should increase the security of the theatre site.
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