Plans have been welcomed to transfer disused Headingley Primary School to the Headingley Development Trust to set up Headingley Enterprise and Arts Centre.
Next week a report on the future of the former school will go the council's executive board.
Council chiefs will be asked to consider options to allow its transfer to the Trust on a long-term lease at a peppercorn rent.
Headingley Development Trust would take on the functions of the community centre which would be sold off.
Coun Martin Hamilton (Lib Dem, Headingley) said: "The proposals will allow the future of the school building to be safeguarded and allow for what is effectively a new community centre for Headingley to be developed and run by the community."
Coun James Monaghan (Lib Dem, Headingley) Chair of the Inner North West Area Committee said: "We have agreed to support the centre by providing a grant of £100k towards the building. We believe this is the way forward to develop community facilities in the area."
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