CBC News has learned the YMCA will not run the Adie Knox pool.
Late last year, city council agreed to consider having a third party take over the facility, instead of having it close.
"We just didn't think that we were able to make the facility viable in the long term," YMCA of Western Ontario CEO Shaun Elliot said.
Elliott said talks with the city ended about a month ago...
"With us having an existing building, only a little over a kilometre away, and with the new aquatic centre that same kilometre away, very close to our existing branch, we just didn't see how we could sustain the building from an economic standpoint," he said.
Coun. Bill Marra told CBC's Lisa Xing that he was surprised the negotiations ended a month ago.
Coun. Ron Jones referred all questions to Mayor Eddie Francis, who is not available for comment this week.
Jan Wilson, the city's director of recreation and culture, said that while she's not directly part of discussions, there still may be a third party willing to take over operations at Adie Knox.
"Those discussions, I understand, are still going on," Wilson said.
Wilson did not say who the party negotiating with the city is.