Northampton Town and Northampton Borough Council are to move forward with plans to redevelop Sixfields.
The Homes and Communities Agency will now be involved in detailed talks after Wednesday's council cabinet meeting backed the scheme.
Cobblers chairman David Cardoza said: "I expect a development agreement to be reached within one month and to apply for planning permission in the autumn.
"It is good for our supporters who also deserve this after many false dawns."
Cadoza added: "We have sat around for five years waiting to get this deal done.
"The real work starts here. This deal is good for the athletics club, who will get a brand new competition standard track, it's good for Northampton Borough Council who will get more social housing and we must ensure that it is good for the football club.
"It is worth remembering that when the club started this project, our near neighbours Milton Keynes did not even have a football club. Now they have a club playing in a superb stadium and are hoping to be a host city in a future World Cup.
"That is an example of how far behind this town and this project has slipped."
Northampton club director Tony Clarke added: "We now have to deliver an enhanced Community Stadium, without large scale retail income, in a depressed market, within the parameters set by the Council, so every penny will count.
"Time and events have not been good to us so far, but we are as determined as ever to succeed and give Northampton and its fans a facility befitting a town of our size."
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