Almost £8m in extra funding will allow South Lanarkshire Council to invest more in the new Larkhall Leisure Centre and digital transformation projects.
New Scottish Government funding to cover £7.891m in pandemic response costs will free up money in the capital programme.
Executive director for finance Paul Manning said "a change in approach" to how the COVID costs are covered would allow the extra money to be put to the two projects.
On Wednesday, April 28, councillors on the executive committee agreed to the investment.
Previously, some of the costs of the pandemic were to be covered by a portion of the council's capital budget but the additional funding from the Scottish Government means this will now be covered in the revenue budget.
As a result, money previously earmarked for coronavirus costs in the capital budget will be spent on Larkhall Leisure Centre and digital transformation projects.
With the money now available, £6m will be added to the £3m of Glasgow City Deal funding for a new leisure centre in Larkhall while the remaining £1.891m will be spent on the council's digital infrastructure.
Mr Manning said: "You will remember from previous committee reports that in that capital programme we were including an element of COVID costs.
"We advised in previous reports that a change in approach to how that spend is funded might be considered.
"That change would be to use revenue funding rather than capital funding to pay for these costs.
"There has been additional funding received and what is being proposed is that that funding is used to fund the £7.891 million of costs.
"If that's done, that funding is available for other projects within the capital programme.
"You can see a proposal that would put £6 million towards Larkhall Leisure Centre and it is suggest £1.891m is put towards digital transformation.
"For both of those things, what we are suggesting happens is that that comes back as part of the report to the June executive committee where we would get further details on profile of spend."
Final plans for the new leisure centre in Larkhall will be developed once the cross-party working group on leisure and culture have completed their review into the services and facilities provided.
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