Councillors are set to consider the development of plans for a multi-million pound swimming pool, library and customer service centre in Ingleby Barwick.
The new centre is one of a series of proposed investments designed to support growth in the south of the Borough.
The proposals will be considered by members of Stockton Council's Cabinet when they meet on Thursday (October 9).
Stockton Council Leader, Councillor Bob Cook, said: "Stockton is a growing and thriving Borough and a growing population means a growing demand for services as well as a need for us to ensure we improve our infrastructure to keep pace with the change.
"Cabinet will be asked to recommend that Council earmarks £3.2 million towards a new centre and that we use this and our strong working relationships with Sport England and Tees Active to lever in additional funding. We have a proven track record in delivering this kind of project and are currently looking in detail at a number of potential sites in the heart of Ingleby Barwick.
"Subject to agreement, detailed plans and full costs for a scheme will be developed for consideration as part of next year's Medium Term Financial Plan."
Councillor Ken Dixon, the Council's Cabinet Member for Arts, Leisure and Culture, added: "Ingleby Barwick has experienced huge growth over the years but lacks local public leisure facilities, particularly local access to a community swimming pool. What we are proposing will address that gap in provision.
"Some work will be needed to identify the best mix of facilities but we are looking at a centre with a 25-metre swimming pool, gym, fitness rooms, library and customer services facilities.
"Local people have been calling for this kind of facility for some time - we have listened and I'm sure this news will be warmly welcomed."
The report also outlines ongoing work to help the south of the Borough's roads and schools cope with the increased demand Stockton's growth will bring.
Councillor Cook said: "We recognise there is going to be significant growth in new housing, particularly in the south of the Borough, and £19million of improvements are already planned to the highways network over the next two years. This follows extensive traffic modelling to identify exactly where these improvements are needed.
"We also recognise there are concerns about the pressure this is placing on primary school places in Ingleby Barwick. Our Children and Young People Select Committee is looking into this in detail as part of its review of school organisation and admission arrangements. Cabinet will consider the Committee's findings later this year."