Up to 122 new apartments could be created on the site of the former Xcite Livingston leisure pool.
West Lothian Council officers recommended that elected members on the Council Executive approved plans to sell the land to Cruden Homes Limited (CHL).
The council said the plans could potentially raise up to £3.1 million, which would be "fully reinvested in protecting and improving council services for the local community in the long term, such improving the school estate".
CHL plan to build a four-storey development of apartments on the site.
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Planning permission would still need to be obtained, but the town centre location is seen as suitable for high-density and town centre uses, such as flats or shops.
Arrangement are in place to move the public artwork called 'Symbiosis' on the site to an alternative location in Almondvale Park in the current financial year. The council is funding & undertaking that work.
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