Willmott Dixon agreed to complete enabling works under the preconstruction agreement at the West Denton leisure centre while Newcastle City Council looked for a new contractor.
The council has now confirmed Morgan Sindall will complete the project with main construction set to start “within weeks”.
Costs on the scheme have risen from £22m when it was first approved in 2022 to £34m now.
The council said: “Like other levelling up projects across the country, the cost of building the centre has risen due to inflation but the council has secured its future with a contribution from Sport England and a further donation from the council- adding to £19.8m of levelling up funding.
“Site preparations are expected to start within weeks. It’s expected the new centre will open in 2026.”
The Leisure Centre, procured through Pagabo’s Major Works Framework, will include a 25m eight-lane swimming pool, a learner pool, a library, fitness studios, a café and a modern gym.
