A former fruit and vegetable market in Worcester has been bought by university chiefs to turn it into a 2,000-seat arena.
The University of Worcester said the derelict market, in Hylton Road, would become a new indoor sports and leisure centre.
It said it was also in the final stages of buying a former car showroom next to the market and a 110-space car park.
The centre would be designed to be used by both students and city residents.
The university said it was now applying for planning permission for the centre, which will have facilities for basketball, badminton and indoor cricket, and hoped the proposals could progress quickly.
It said the extra car parking spaces would help reduce the pressure on on-street parking elsewhere in the city.
Vice Chancellor David Green said: "This important site, which fronts directly on to the River Severn, has been a derelict eyesore for many years.
"Our aim is to transform this site to enhance the city landscape, and provide excellent facilities for our students and the community."