Cardiff City Football Club has confirmed that an agreement has been reached to allow Cardiff Blues to terminate their lease at the Cardiff City Stadium.
A statement issued by the football club states the decision was in the best interets of all concerned.
It went on to say that it would also allow significant branding to take place at the Cardiff City Stadium.
This announcement follows months of speculation over whether the regional rugby side would return to their historic ground.
The Cardiff Blues left the Arms Park in 2009 after signing a tenancy agreement tying them into playing at the Cardiff City Stadium in Leckwith on the outskirts of the city until 2029.
The news of the return to the Arms Park next season has already been welcomed by both current and ex-players.
Growing concern has been expressed over dwindling attendance and in February this year the Blues returned to play two successive Rabo Direct Pro12 fixtures at Cardiff Arms Park.
Cardiff RFC have continued to play at the city centre Arms Park in the Welsh Premiership since the Blues moved two miles down the road.
Today's announcement comes hot on the heels of Cardiff City's defeat to West Ham in the Championship play-offs yesterday afternoon.
It's the third time in as many seasons that Cardiff City have reached the play-offs but have failed to gain promotion to the Premier League.