The agreement will see the club's current Gay Meadow ground bought by a private property firm, and then sold to the borough council as a site for its planned theatre complex.

As part of the deal council-owned land in the town centre will then be handed to Dunedin Property, owners of the Darwin Shopping Centre, to create an improved shopping area for the town.

Alaska, the developers behind Shrewsbury Town's New Meadow stadium, in Oteley Road, have been locked in months of secret negotiations but say they are now ready to act once contracts are signed.

It is a very unusual deal in that there are no losers, everyone wins, it is really sweet Alan Hay, boss of Alaska

The developers were planning to build apartments on the old ground, but by selling the site to Dunedin enough cash will be raised to start building the new 10,000 all-seater stadium.

Alaska boss, Alan Hay, told BBC News Online the deal was the culmination of five years work to bring a new stadium to Shrewsbury.

"There are four parties to the deal Shrewsbury and Atcham Borough council, Dunedin Property, Alaska and the football club.

"It is a very unusual deal in that there are no losers, everyone wins, it is really sweet."

The deal is subject to approval by councillors and the various boards, but Mr Hay says he is confident it will be finalised by the end of the year.

He said building work could then start in the first few months of next year.