Swansea Council has announced plans to take ownership of the Palace Theatre and develop it into retail and office space.
The building, which has been on the Theatres Trust risk register since 2006, is to receive a £5 million interior reconstruction to include a community space. The work will take two to three years to complete.
The announcement comes days after the theatre was subjected to a suspected arson attack on September 8, which is believed to have compromised its historic auditorium as a performance venue.
Previously repurposed as a nightclub and bingo hall, the venue has been abandoned since 2006.
Swansea Council, which plans to take ownership from a private company, has worked to renovate the building before, securing £75,000 in 2015 to make it water-tight.
Theatres Trust architecture adviser Claire Appleby said the news was positive.
“We are optimistic to hear of news that Swansea Council is to take ownership of the Palace Theatre.
“We know from a previous feasibility study that it is unlikely that reopening the Palace for theatre use will be viable. However, the Theatres Trust would be generally supportive of a sensitive mixed-use regeneration scheme that looks to preserve the main body of the auditorium for community use,” she said.
She added: “We remain hopeful that news of the council’s ownership proves to be both a fresh and positive start for the building and we look forward to working with the council on this in the forthcoming months.”
The council will put its plans to its cabinet later this month.