Aberdeen City Council (ACC) has selected CHAP Group to deliver the works, which will see Northfield Swimming Pool refurbished to include a gym and wellness centre.
The 25-year-old facility will see major improvements, including the creation of a 40-station fitness suite, multi-purpose studio, along with changing stations and additional parking.
ACC are backing the project with support from Sport Aberdeen, which operates the city's leisure venues, as well as from sportscotland.
The business case was approved by the City Growth and Resources Committee but the plan had to be put on hold because of the Covid-19 pandemic and the resulting restrictions.
Councillor Gordon Graham, vice convener of Capital Programme Committee, said: "To be progressing with the build is fantastic news for both the local community and Aberdeen as a whole.
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"Together with Sport Aberdeen the council is committing a very significant financial investment to deliver a state-of-the-art health, fitness and sport hub. In addition to technical upgrades to the pool itself, the new facilities will provide an exciting wellness centre for the local communities of Northfield and Mastrick, and people across the city.
"The new dry facilities will greatly broaden its appeal, increase income, and so help make the pool more financially self-sustaining long into the future."
Sport Aberdeen has been awarded funding of £100,000 from sportscotland, Scotland's national sporting body, to support the project – the maximum amount awarded for capital projects.
Sport Aberdeen chairman Tony Dawson added: "We are delighted to reach this significant milestone in the refurbishment and expansion of Northfield Swimming Pool.
"Along with our partners at Aberdeen City Council, we have been working incredibly hard behind the scenes to ensure this project has kept momentum over the last, very challenging year.
"The support of sportscotland, by way of a significant funding grant, is very gratefully received and we look forward to delivering this fantastic venue for the Northfield community, creating the opportunity for more people of all ages and abilities to access first class sport and physical activity facilities."
The pool is expected to open in summer 2022.
