Southwark Council has voted unanimously to proceed with a plan to secure the future of Dulwich Hamlet FC.
Developer Meadow Residential has forced the club out of their home ground at Champion Hill Stadium, claiming the seventh-tier side had repeatedly breached their licence.
However, at a Cabinet meeting on Tuesday evening, Southwark Council voted to progress with a plan to acquire Champion Hill from the developer in a bid to save the 125-year-old club.
Dulwich Hamlet, situated in an affluent part of south London, regularly attract attendances of over 2,000 and play in the Isthmian League Premier Division.
Meadow wants to build new housing on the site of Champion Hill, with its plans also seeing a new home for Hamlet constructed on an adjacent site.
But those plans have been blocked by Southwark Council, whose leader Peter John has called on Meadow to sell the site - a call backed by Mayor of London, Sadiq Khan.