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Around 800 construction jobs will be created when work gets underway to revamp the Plymouth Pavilions.
Plymouth Council has selected Akkeron Leisure to carry out the £83 million revamp.
The work involves the creation of a new arena and the construction of an ice rink to replace the existing facility.
Plymouth councillor Ian Bowyer, cabinet member responsible for finance, claimed it was "a great day for the city".
"It represents a significant step forward and a new dimension to the sports, leisure and cultural offer for the city," he said.
Akkeron chairman and Plymouth Argyle football club owner James Brent told the BBC he was "delighted".
"It gives us the opportunity to work with the council to make a real positive change to Plymouth and the wider region," he added.
The Pavilions opened in 1991 and is currently the home of British Basketball League team the Plymouth Raiders, who are one of the 11 premier sides in the country.
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