Saltdean's historic Lido may receive up to £700,000 of council funding to be used to replace the public library in the building.
Work on the £12 million restoration project is already underway with the pools expected to reopen this summer.
The proposal is to be submitted to Brighton and Hove City Council on 9th February.
The money would be secured by borrowing and included in the council budget for 2018-19.
The money would pay for a temporary facility for library services during the demolition as well as an extension providing permanent facilities.
The current restoration will see the main pool and children's pool renovated along with outdoor landscaping and water heating facilities.