Aquaterra looks likely to lose out to Greenwich Leisure Ltd (GLL) for the £10m contract to run Islington’s leisure services.

Aquaterra has run the local leisure services for more than a decade and its current contract was set to run until March 2018, but the Town Hall called it in last March to search for a better deal.

GLL, which was the first UK leisure operator to be awarded the Social Enterprise Mark and the Big Society Award, hosts 38 million visitors a year across the 115 leisure centres that it manages.

It also scooped the prestigious contract to run Olympic Park and the Aquatics Centre, which will open its doors on 1 March, for the first time since the Games.

GLL is offering a number of improvements: a new fitness area at Archway Pool, a larger gym at Cally Pool, a climbing wall at the Sobel Centre, more facilities at Highbury Tennis Centre, a larger gym at Highbury Pool and a new running room at Ironmonger Row Pool in Finsbury.

While Aquaterra is currently subsidised by the council, to the tune of £60,000 a year, GLL claims it will be able to generate at least £1m a year for the borough.

“Aquaterra have done a very good job, but we believe this deal with GLL is really brilliant,” says council leader, Richard Watts. “We will get all these improvements and, instead of us paying someone to run our leisure, GLL are confident they can make a profit.”

GLL said the contract was in the call-in period and so it was too early to comment. Aquaterra are likely to challenge the decision.