The listed building which once housed Poplar Baths will be converted into a brand new leisure centre while council homes will be built nearby.

The site, opposite Chrisp Street Market, has fallen into disrepair since the pool was closed down in 1988.

But Tower Hamlets Council has now entered an agreement with developers Guildmore Ltd, which means detailed design and planning applications can be drawn up and submitted for approval.

The agreement marks stage one of the £36 million scheme, which will also see new homes and a youth centre built where the former Dame Colet House and Haileybury Youth Centre currently stand.

Cllr Rabina Khan, cabinet member for housing, said: ‘’I’m pleased we have taken the first steps to bring back this much loved community asset back into use for the benefit of families, residents and the wider community.

“The scheme will also go some way in addressing the housing shortage in the borough.”