FC United, the Manchester United fans' breakaway club, has announced plans to build a new 5,000-capacity stadium costing about £3.5m.
The club said it hoped the council would contribute £650,000 towards its new home in Newton Heath.
Manchester City Council said it was considering funding options but had no defined figures.
Andy Walsh, FC United's general manager, said the new base would be "at the heart of the community".
"What we're hoping to do is develop a modest 5,000-capacity ground with community facilities, a new astro-turf pitch, refurbished sports, a community room to be used by people in the local area and offer other sporting opportunities on the site," he said.
Manchester City Council leader Sir Richard Leese added that the club did a "fantastic job" within the community.
"The club's not, for the foreseeable future, going to be competing with the two big clubs within the city, it's at a level of football that we don't have in Manchester at all," he said.
Eddie Smith, from the urban regeneration company New East Manchester, added that the football club was "truly community-based".
FC United, the Unibond Premier League club, was formed by Manchester United fans who were angered by the controversial Glazer takeover in 2005.
The team currently play their home games at Bury's Gigg Lane ground.
Their proposed ground, in Newton Heath, is where Manchester United formed in 1878 before the club joined the Football League in 1892.