Plans to sell off the running track to fund a rebuild of Carn Brea Leisure Centre have been backed by Cornwall Council's cabinet.
The council has confirmed it has accepted an offer from developers, for a supermarket and other shops, to sell land including the track at the 17-acre site.
It has been proposed to move the running track to Redruth School if funds are found.
Supermarket giant Asda is understood to be eyeing up the site to launch a new store in Pool.
"We recognise the importance of the leisure centre to the local residents and are committed to working with the Carn Brea Leisure Trust to carry out improvements to the facilities," said Alex Folkes, the council's cabinet member for finance and resources.
"The proposal involves accepting one of the offers which are on the table and then using the proceeds from the sale to refurbish the leisure centre and provide the running track.
"While we have been looking at a number of sites for the running track, our aim is to relocate it within the Camborne/ Pool/Redruth area, with the preferred option at Redruth School."
The sale is part of a reported £300 million regeneration project for Camborne, Pool and Redruth and is seen as a lifeline for the rundown leisure facility, which opened in 1974. It closed in 1999 and reopened a year later, run by the Carn Brea Leisure Centre Trust.
The Royal Duchy of Cornwall Athletics Track, is the only county-standard and eight-lane track in Cornwall, and has been run, minus any subsidies, by the leisure centre trust since 2006.