Peterborough United are close to an agreement with the city council regarding the proposed redevelopment of London Road.
Posh want to improve the Moy's End of the stadium, increasing the capacity from 14,000 to 19,000 and incorporating a further education centre into the stand.
Peterborough chief executive Bob Symns told the club's official website:
"Talks between Peterborough United and Peterborough City Council have taken another giant stride forward. Complex negotiations on surrender and new lease options, together with future planning opportunities, are nearing closure for final sign-off.
"Both parties have spent many hours over a vastly extended period building a legal package that will incorporate current and future new stands, club ownership of the stadium and sustainable financial arrangements that will conclude and define the football club's future."