There is £1m of community infrastructure levy funding which could go towards the restoration.
Talks are underway with West Sussex County Council for further money, but it is expected additional investment will still be needed.
Councillor Sophie Cox, the leader of the council, said: “Our residents have made it clear how much the lido means to them and that they want us to invest in it for the decades to come. We’re determined to make that a reality.
“This is a critical time for the future of the lido but it feels really positive that there is a clear plan to save this unique building.”
More than 1,500 people have signed a petition launched a year ago calling for the nearly 100-year-old attraction to be saved.
Organiser Elaine Deed said at the time: “Our beloved lido, once a symbol of local heritage, now stands in disrepair, marked by graffiti and perilously close to falling into the sea.
“The Worthing Lido is more than a structure, it’s an embodiment of Worthing’s rich cultural history and cherished memories, enjoyed in the past by locals and visitors.”