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The prominent Council-owned site was marketed late last year after the leisure centre building was demolished.
The 8.5 acre site received six offers, all of which were for housing developments, with Miller Homes chosen as the preferred bidder.
The developer is proposing to transform the site into a 116-property development, with a mixture of three bedroom homes, including those with a frontage along the canal.
The details of the disposal were shared with members of the Council's Infrastructure, Regeneration and Economic Development committee this week.
Members approved the sale and gave officers the green light to conclude negotiations with Miller Homes.
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Officers will also liaise with Miller Homes throughout to ensure the design proposal is aligned with the Local Development Plan and place making ambitions including the Clydebank Framework.
Councillor Iain McLaren, Convener of Infrastructure, Regeneration and Economic Development said: "I am pleased to see that this extensive site in Clydebank Town Centre will be put to good use once more.
"This will have a positive impact on the town centre and fits in with the work the council is doing to regenerate Clydebank, including our recently agreed Clydebank Framework."
Members at the meeting also approved the sale of a site at Burroughs Way in the Vale of Leven Industrial Estate at a price of £1million.
The successful bidder - CW properties Bruce Weir Holdings - intend to develop the site for mixed industrial usage for other organisations.
Councillor Diane Docherty, Vice Convener of Infrastructure, Regeneration and Economic Development said: "The proposed development will develop an area of land, which is currently unused and will provide a supply of much needed industrial and warehouse accommodation to the area.
"The development of this site for industrial/warehouse use will generate local employment opportunities as well as generating income for the Council in the form of business rates."
