The new multi-million pound Michael Woods Sports and Leisure Centre is being built in Glenrothes and will include three pools, dryside facilities, synthetic turf pitches and an athletics track, which will be built where the old FIPRE building is located.
Fife Council says the project to build the new centre is on time and on budget and is part of the Future of Leisure programme.
When complete the programme will have seen the Council invest £55m in three new facilities in Dunfermline and Kirkcaldy too.
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Graham construction is the main contractor for the Fife project, which is due to be completed by April 2013.
Graham will be using two 36-tonne machines and one 20-tonne digger to salvage materials from the old building for reuse.
The contactor is working to reuse and recycle the majority of materials.
Timber from the squash courts has been removed and some laid at Kirkcaldy Squash Club.
Councillor Bill Kay, chair of the Glenrothes Area Committee said: "Removing such a well-known local landmark is a significant step and care is being taken to demolish it safely, reusing and recycling wherever possible.
"I’m also glad to hear work is being carried out to preserve the mural which was inside FIPRE and that it will be displayed in the new Centre, as this will give an important link between the old facility and the new one."
Robert Hutchison, site manager for GRAHAM Construction, said: "I come from Kirkcaldy so I know FIPRE well and how long it’s been part of the community.
"And the benefits of careful deconstruction are clear when you hear we were able to work with the council to help the local squash club by carefully removing, safeguarding and donating the flooring from the old centre."
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