A £2 million bailout package to save an iconic art deco Cornish lido has been backed by councillors in a bid to protect the future of the pool.

The open-air Jubilee Pool at Penzance will be renovated using Cornwall Council cash and then put into the control of a trust for the next three years.

The investment package was backed at an extraordinary meeting of the authority's Communities Overview and Scrutiny Committee.

Martin Nixon, of the Friends of Jubilee Pool, said: "This is great. I think it is really important to see the pool not as a building in isolation, but as a catalyst for regeneration across the entire promenade.

"That level of investment is a statement of faith in how important Cornwall Council sees the pool.

"It is not just a local amenity, it is iconic, and important not just for Penzance but for the whole of Cornwall. It is internationally important and we welcome any investment.

"Everybody in Penzance should be celebrating this."

The development would be part of a wider proposal to transfer control of council leisure centres across Cornwall to a charitable trust to save money.

Cornwall Council is already in negotiations with Carrick Leisure – which operates Truro Leisure Centre, Princess Pavilion and Ships and Castles in Falmouth – to take over other council-run facilities.

Under the proposed agreement, Carrick Leisure would be responsible for the day-to-day running of the services while the council would be responsible for the centres and their maintenance.

As part of this, the authority would spend the estimated £2 million needed to "stabilise the structure" of the Jubilee Pool and buildings.

There is also speculation of a private firm being invited to establish a high-class restaurant at the pool.

Rebecca Farrington, who runs the Poolside Indulgence Cafe at the pool, said: "I have heard nothing, but I would certainly hope to be included in any discussions about catering provision at the pool."

Cornwall Council has been examining its annual £80,000 subsidy to the much-loved Grade II-listed art deco structure for some time.

The change could start as soon as November. The council said customers should notice no changes when the operations switch.