CITY councillors want to set up a new company to run the authority's leisure services.
Subject to final agreement, the move would represent the biggest shake-up yet in direct public services in Hull.
The remit of the proposed not-for-profit company would cover all sport and leisure activities currently provided by the council, along with operational park services and non-school catering.
Responsibility for Hull New Theatre, Hull City Hall and Hull Arena would also switch to the new company.
At a cabinet meeting yesterday, councillors also agreed to examine the option of transferring heritage services such as the museums and libraries.
If given the go-ahead, existing council staff would transfer to the new company.
Councillor Terry Geraghty, cabinet member for leisure and culture, said: "If local government is going to survive in the next ten years it has got to become more businesslike in the way it operates.
"Creating this company is the only way forward to protect jobs and services to the public.
"Theatre attendances are up, the museum service is excellent and everything is starting to gel on the cultural side with things like the recent big exhibitions at the Ferens.
"By bringing all this together in one company it should also help us go for the City of Culture title in 2017."
The main appeal of creating a not-profit company as a separate legal would be a series of financial benefits currently not available to the council.
They include possible VAT exemption, business rates relief and the ability to compete for private sector work.
Overseen by a seven-strong board co councillors, the company would retain any surpluses it made to plough back into services.
A final decision is expected before Christmas.
