The Deepings Leisure Centre is likely to be closed for good as the council faces spiralling costs.
Opposition councillors have described the move as a “betrayal” of residents.
The Deepings St James leisure centre has been shut since July 2021 due to serious health and safety concerns.
A £10.5m refurbishment to repair the damaged roof was approved earlier this year.
However, South Kesteven District councillors will be told next week that the project’s mounting price tag has become unaffordable.
It’s recommended that the refurbishment is cancelled and management of the leisure centre is handed back to owners Lincolnshire County Council.
Plans for a 3G football pitch on the nearby playing field would also be scrapped.
The council has blamed higher energy prices, construction costs and the cost of borrowing for the proposed cancellation.
A spokesperson said: “Along with other public authorities, the current financial outlook remains very challenging for South Kesteven District Council.
“While the advantages of providing publicly accessible leisure facilities are well known, many councils across the country are having to make the difficult decision to either temporarily or permanently close their leisure facilities.
“The council does not underestimate the hugely significant impact a permanent closure of Deepings Leisure Centre would have on the local community.
“The building is 48 years old and requires significant investment to bring it back into use. Regrettably, the reality of the situation is that it may no longer be viable to continue managing a leisure centre at the site.”
The question will be decided at Full Council on Thursday, November 24.
Councillor Ashley Baxter, the leader of Alliance SK, said he was “disgusted, disappointed and outraged” by the proposal.
“Council leaders should resign for betraying residents and not reopening facilities. This decision will affect everyone in the Deepings,” he said.
“I know there’s a cost of living crisis and war in Ukraine but if the council had any competence, it would already be repaired and open for business.
“Leisure centres have always been run by districts rather than the county council, so I can’t see it reopening under LCC. Our only hope might be the community finding a way to reopen it.
“Deepings Swimming Club has been using the pool since the 1970s. It has produced Olympic medallists, and offers people an affordable form of exercise.”
The Alliance SK have submitted a motion for the meeting asking that the council stay committed to the repairs.
It was discovered last year that heavy rainfall had damaged the leisure centre’s roof, with water also spreading throughout the building.
Design consultants have already been appointed and the initial construction contract been awarded.
The council says its other leisure centres in Grantham, Bourne and Stamford are also in need of investment.
Its electricity bill for 2023/24 is set to be £1.1million higher than expected, and fuel will cost £200,000.
MyLocal Lincolnshire is the new home of The Lincolnite. Download the app now.