The new centre will be built on a former car park on Constitution Hill and will include a 25m, 8-lane swimming pool and a teaching pool.
There will be a 4-court sports hall suitable for indoor football and badminton.
Plans drawn up by Gloucester architect Roberts Limbrick also include a 100-station gym and two exercise studios.
The project is being funded by Dudley Council and delivered by Alliance Leisure. The council hopes the new building as a catalyst for regeneration of the Flood Street area.
Leisure centres in Stourbridge and Halesowen will also be refurbished as part of the council’s plans to improve fitness.