Wiltshire Council's cabinet has approved an "exciting plan" to "extensively refurbish" Trowbridge Town Hall.
The Grade II listed building is owned by the council and over the last 10 years has been run by the Trowbridge Town Hall Trust, an independent charity.
The building is going to be subject to extensive refurbishment and remodelling as part of the Future High Streets Fund (FHSF) £16 million investment in Trowbridge.
Wiltshire Council says the project will "enable it to provide a greater capacity to hold events as well as a diverse programme of cultural and social activities".
The council will continue to work with the Trust to make sure they are in a position to be able to take over the building, ahead of the lease being granted.
"The Trust has exciting plans for the Trowbridge Town Hall's future. By treating this landmark building as a community asset and transferring it on a long lease to a community organisation such as the Town Hall Trust will ensure that its future as a vibrant hub of activity in Trowbridge town centre is secure.
The Trust's Director, Alan Wright, added: "Today marks the culmination of a remarkable collaboration between a small but determined local community organisation, a little over ten-years-old, a pro-active town council, and a supportive unitary authority that understood the contribution a re-imagined Town Hall could make, not only stimulating the local economy but, also, becoming an exemplar for cultural and community activity throughout the region.