The decision has come in a letter to chief executive David Marlow.
The council first granted non domestic rate relief of£0.5m to the Dome in 1990 and has annually confirmed this decision. The total amount of rate relief granted to date is£5.5m. The final decision on the granting of rate relief is a matter for the DTLR.
The decision has been welcomed by Mr Marlow, who said: 'This is good news for all associated with the Dome, both service providers and its many loyal customers alike.
'The district auditor's decision has supported the council's view that the role of the Dome is much more than a leisure centre but as a community asset with a charitable purpose. We will now wait to hear further on the matter from the DTLR.'
A new board of trustees is currently being recruited in a new management structure for the Dome and will apply for charitable status to the Charities Commission in the near future.