Carmarthenshire County Council (CCC) and the Welsh Government have joined forces to develop a masterplan for the construction of a major new leisure complex in Llanelli.
The joint venture will also carry out a detailed feasibility study into the plans, which include a leisure centre, a sports academy, a 10-pin bowling alley and adventure activities.
Among facilities planned for the leisure centre and sports academy are an eight-lane pool; a diving and splash pool; a health and fitness suite; a children's fitness zone; and an eight-court double sports hall.
Sports performance analysis facilities; a climbing wall; a dance studio; a gymnastics centre; and sports recovery and therapy suites could also feature.
A number of sites are currently being considered, which include the Old Castle works site - linking the coast and the town and providing a 'Jewel in the Crown' for Llanelli Waterside.
CCC leader Meryl Gravell said: "We are working very closely with the Minister Edwina Hart and the Welsh Government to deliver this fantastic scheme, which will be a premier leisure and visitor destination for the Llanelli area.
"This is the missing piece in the jigsaw for regeneration in Llanelli and promises to be the Jewel in the Crown. We look forward to seeing the feasibility study and making progress with this development as soon as possible."
Results of the feasibility study are expected to be published later this year.