Staff and governors are set to receive a draft copy of the report from the inspection team in which it will say the school will be no longer listed as being in special measures.
The findings of the report will not be officially released until the end of the month but the Whitby Gazette has learnt of Ofsted's findings.
Although the report will say the college is still in need of improvement it presents a significant step forward for all involved.
The school was placed in special measures in November 2005 following a damning Ofsted report which highlighted concerns about the standard of teaching and examination results.
Ofsted noted in its last report in November that the college had been making "satisfactory progress" and that the quality of teaching had improved significantly.
A threat of strike action by Unison members was also averted following a meeting between union leaders and head Rachel Totton and county councillor Jane Kenyon, so today's news will come as a welcome relief for the troubled school.
Borough councillor Joe Plant, who has a child at Whitby Community College, praised the teachers at the school but warned it must continue to improve.
He said: "The teachers at the school have put in a lot of hard work and deserve an awful lot of credit for the improvements.
"However I worry what might happen if the support the college has so far received is withdrawn.
"The Local Education Authority also need to take a good look at themselves because they took their eyes off the ball in allowing the school to get into the mess in the first place."
When coming out of special measures the school is likely to be given a notice to improve.
By being given a notice to improve the school is still judged inadequate but, unlike special measures schools, it has demonstrated the capacity to improve and its failings are not as severe and widespread as those in special measures.
Once a school is removed from special measures the responsibility for monitoring the continued improvement switches from Ofsted to the Local Education Authority.
It will be up to the LEA to ensure that standards continue to rise ahead of the next inspection.
Ms Totton said she was unable to comment at this time.
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