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The Whitmore Reans Estate based centre on Hordern Road provides educational and environmental outdoor activities for all ages and abilities, in a green canalside location.
A strong business case has been put forward by the organisers of the social enterprise - and both parties are now working towards signing an official agreement for a 35 year lease.
Councillor Peter Bilson, Deputy Leader and Cabinet Member for City Assets and Housing, said: "Wildside Activity Centre provides a tremendous service to the community and is run by a very dedicated team of volunteers.
"We have worked closely with the centre's leadership team to enable this Community Asset Transfer to take place.
"The business case they have put forward means the long term future of the centre is secure and will serve the local community to the full.
"The official agreement must now be signed by both parties - and I am looking forward to seeing the centre build on its popularity over the coming years."
The Wildside Activity Centre was set up by the council as a local authority run outdoor pursuits centre but has been self funded since May 2014.
A registered charity, the company is committed to investing £75,000 worth of volunteer hours to provide activities and improve the facilities on a not for profit basis.
It is looking to further develop its extensive programme, which includes canoeing, cycling, narrowboat trips, conservation projects, nature and adventure activities.
This will be achieved through sessions for schools, youth groups, uniformed and voluntary organisations, and disability groups, as well as family orientated holiday programmes.
Public open days showcasing its work, and events on key dates such as Mother's Day, will continue to broaden the appeal of the centre.
The hire of the meeting room, with a small kitchen, wi-fi and data projection facilities, is also in place to bring in revenue.
Long term unemployed City of Wolverhampton residents can benefit by volunteering at the centre.
Len Kruczek, Wildside Activity Centre Chair of the Board, said: "This is a huge landmark for us and we are extremely grateful for the council's support on this transfer of the centre to the charity.
"We serve all ages and all abilities and get people reconnected with nature.
"We have a wonderful, newly decorated meeting room with canal views available for hire, an extensive range of activities, brilliant boat trips and exciting holiday programmes.
"We are completely committed to the hard work ahead of keeping the centre going to serve the local community."
- released: Thursday 20 July, 2017