Under threat Peers Sports Centre in Littlemore is set to be given a lifeline until 2010 thanks to a £375,000 cash injection.
The facility, which was last year described as crumbling and in need of urgent repair, is now not believed to be in such a critical condition.
In fact, experts think the facility only needs a relatively small amount of work to bring it up to scratch - and it is now set to become an integral part of the site of the new Oxford Academy, which is due to open in September.
Tonight, the city council will announce plans to set aside money to keep the centre running for a further two years.
It is currently in negotiations with Oxfordshire County Council and the Diocese of Oxford, the Academy sponsors, about increased community involvement in the multi-million-pound specialist sports centre.
City council chiefs are at pains to ensure the Academy - the first of its kind in the city - becomes a facility for the community as a whole, not just a few.
And at the heart of that pledge will be access to on-site sporting facilities at affordable rates.
Regular swimmer Beryl Blewittcorr, 80, of Littlemore, uses the pool every week.
She said: "That is a brilliant bit of news. There is not anywhere else to go if you live around here.
"There is Temple Cowley, but the bus only goes to the centre and it is not as warm as Peers.
"We had heard it was going to close in March and then that got pushed back to July or August so there was a bit of uncertainty around it."
Scores of residents got behind a campaign to keep Peers open after the city council announced its intention to wash its hands of the facility.
Recently-elected Liberal Democrat city councillor Ruth Wilkinson, co-ordinator of the Save Peers Sports Centre campaign, said: "A reprieve will be welcomed by all supporters of the campaign, but there is no indication of what will happen after 2010.
"I hope the building won't be left to deteriorate in that time."
City council leader Bob Price said: "The Academy will have some excellent facilities and we are having intensive officer and member discussions about community access to them.
"It's important for the whole of the Rose Hill, Littlemore, Blackbird Leys area that we get a high level of openness - especially for young people.
"We want to be able to offer a range of positive activities to the community at a price that is acceptable to the council and that people can afford."
The money being ploughed into Peers is part of a package of budget amendment measures to be unveiled by the city's new Labour administration, which took over after the elections on May 1.
All will be subject to a vote by full council.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article