The facility will include a number of elements - such as what the architect claims to be the world's first 'uphill waterslide' - that it is hoped will attract more visitors to the city.
Swansea Leisure Centre is also set to include Wales' biggest fitness centre.
Powell Dobson director Andrew Nixon said: 'A key driver in the reworking of this landmark was the need to significantly increase daylight into the building.
'In place of the original pre-cast concrete panels, we propose to introduce a new palette of glazing, translucent screens, timber panelling and brise soleil (sunscreens).
'The existing exposed structure will be repaired and rendered with much lighter colour. The result will be a fresh interpretation of the original to create a light, airy space that people will enjoy.'
In addition, new technology will allow visitors to learn how to surf on artificial waves.
The scheme will be submitted for planning at the end of January.