Gaddu Associates has fought off competition from 4 other contenders for the Grade II-listed building and the adjoining land off Wolverhampton Road.
The decision is expected to be approved by Cabinet Resources Panel next Tuesday.
Gaddu Associates will then further develop its proposal to refurbish the building as a multipurpose conference/wedding/banqueting centre, with associated community uses.
Heath Town Baths and Library has been identified as a building of community value through the Heathfield Park Neighbourhood Plan.
The council is eager to see the historic building put back into use to boost the area as a whole.
Councillor John Reynolds, Cabinet Member for City Economy, said: "We are delighted we have been able to find a suitable developer for this historic site that will benefit the local community.
"The building is a much loved part of Heath Town and an important part of the heritage of the city.
"It was vital we chose someone who sees its potential, is prepared to invest in its future, and work with the local community."
Bal Singh and Pav Kumar, representing Gaddu Associates, said: "We have a strong track record in bringing old buildings back into use and we recognise that the former Baths and Library can be a major asset again to the area."
Chair of the Heathfield Park Community Action Network (CAN), David Cope, who was part of the evaluation panel, added: "This represents a fantastic opportunity to bring the building back to life and ensure its future use meets local community needs. We look forward to working closely with the developers as their plans move forward."
The site sits at the heart of old Heath Town, in close proximity to the Heath Town estate, which is undergoing a multi million pound revamp.
City of Wolverhampton Council and Wolverhampton Homes are working in partnership to regenerate the estate with proposals for new housing and investment in the retained blocks, including environmental and landscape works.
- released: Tuesday 3 January, 2017