A planning row over a new Brighton and Hove Albion football stadium will no longer be going to court.
The football club has been pushing for a new stadium since 2001
The club and Lewes District Council said there had been assurances from the government over the reconsideration of the Falmer planning application.
The new decision is being taken after an error by Deputy Prime Minister John Prescott in his approval last October.
Brighton and Hove Albion FC said it was pleased the court hearing scheduled for December had been called off.
The club's attempts to build a new stadium at Falmer, to the north of Brighton, have been ongoing for the past five years.
Mr Prescott granted planning permission nearly a year ago, but that was quashed due to a mistake over the proposed site's location being described as "within the built-up area" of Brighton and Hove.
But Lewes District Council, the South Downs Society and Falmer Parish Council continued with a legal challenge because the government had not said it would consider all their objections when the decision was retaken.
Lewes council said it had now been given this assurance in a letter received from government lawyers on Tuesday morning.
It opens the way for Ruth Kelly, the new Communities and Local Government Secretary, to take all interested parties' views into account when she reconsiders the planning application.
The football club said it hoped to submit its papers to the government by Christmas.