The project took a major step forward after securing £5 million funding from the National Lottery.
Belfast City Council aims to conserve the building's historic features and connect users to its important Victorian history whilst providing upgraded leisure facilities including a new 25 metre pool and state-of-the-art gym.
It is expected to cost £17m to complete.
Funding for the project was awarded through Heritage Lottery Fund's Heritage Enterprise programme which provides funding when the cost of repairing an historic building is so high that redevelopment simply is not commercially viable.
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Announcing the award, Head of HLF Northern Ireland, Paul Mullan, said: "Templemore Baths has a special place in the heart of the local community and it is wonderful to be involved in this fantastic project. Thanks to National players this £5m investment will help to conserve this historic building and ensure it continues to be a valued and vital resource for the people of Belfast for many generations to come."
Alderman Jim Rodgers, Chair of Belfast City Council's Strategic Policy and Resources Committee, said: "We are absolutely delighted to have been awarded this funding by the Heritage Lottery Fund towards the restoration and redevelopment of Templemore Baths. The combined £17million investment will have the dual benefit of restoring this iconic building to its former glory and allowing us to deliver our ambitious programme of improvements to leisure provision in Belfast."
The work at Templemore Baths forms part of the council's city-wide Leisure Transformation Programme, a 10 year, £105 million investment to develop seven new state-of-the-art leisure facilities, improving leisure services and programming to enable more people to get more active more often.
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