"The London Development Agency (LDA) is to refurbish the existing Olympic-sized pool in Crystal Palace park and build a new regional sports facility after 2012.
The pool, which is housed in the National Sports Centre, was opened in 1964 but its equipment has not been upgraded since.
A recommendation to carry out a £3million refurbishment will go to the LDA's board on February 22, which, if approved, will ensure the pool remains open in the run-up to the Olympics.
LDA development director, Ted Kyzer, said: "The existing pumping plant at the National Sports Centre is old and in urgent need of repair."