Posh have a rental agreement at London Road which lasts until 2014

Peterborough City Council has agreed an £8m deal to buy Peterborough's London Road ground from its current owners.

London Road is currently owned by Peterborough United Holdings Limited, with whom the club have a rental agreement lasting until 2014.

Councillor Marco Cereste told BBC Radio Cambridgeshire: "The whole deal would cost £8m, but we get an asset in return and we will get returns in rentals.

"We need a thriving club and we need to redevelop the area around the ground."

Despite the fee of £8m agreed with the seller, plus a further £650,000 in associated costs, Cereste believes buying the ground represents value for money.

"Technically it's not worth £8m, but it opens up complete and proper redevelopment of the entire south bank area," he said.

"It's not just about football, it's about providing community facilities and we want to develop a sports village."

The proposal will go before the whole city council on 21 December, and subject to its approval a deal will be signed and a the purchase completed.

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