Meden Sports Centre in Warsop, Nottinghamshire, has faced ongoing maintenance issues with a temporary closures and Â£500,000 spent on repairs.
Mansfield District Council has said it is "unsustainable" and has launched a consultation on its future.
However, Warsop Parish Council said it was "essential" to the area and it would fight to keep it open.
The centre, which dates from the 1960s, was closed for six months in 2014 after an inspection identified fire safety concerns.
Officials have said renovation or rebuilding costs could cost between Â£1m to Â£8m.
Andrew Tristram, district council portfolio holder for the environment, said: "The council has undergone a review of leisure services at Meden Sports Centre and concluded that the current operating model is not sustainable for the future.
"There are increasing uncertainties about the running costs and capital investment due to the condition of the building".
However, parish council chairman Andy Wetton said: "The centre is essential to the area but this administration seems hell-bent on closing it.
"There was money available to replace it but this has been spent on other things.
"Any attempt to close it would be a declaration of war on Warsop and we would fight it hard."
The district council said no changes would be made before April 2018.
Any move to close a sports centre would be a "declaration of war" on the local community, a councillor has warned.