The football club have been playing at the City Ground stadium since 1898, but it had reached a stalemate on whether the council would renew the club’s lease.
Executive members of the council met on Tuesday, July 16, and agreed to put the freehold up for sale to the club.
The leader of the council, Cllr Neghat Khan (Lab), said the approval means from the council had “done everything we can” to get a deal done, and now the club needs to finish the transaction.
Cllr Khan said: “Exec Board has agreed to sell the freehold, sell the land, to Forest.
“So now that means we have done everything within Nottingham City Council to get the approval to get that deal done. Now all will be subject to signing legal contracts.”
Council documents state it is looking to finish the sale and receive the money in the 2024/25 financial year, which ends in March next year.
In a statement, the club said last week that the purchase is reliant on the ability to expand the stadium and make big changes.
It said the purchase is “entirely conditional on Nottingham Forest first being granted the relevant permissions that will allow us to realise our hugely ambitious plans our hugely ambitious plans for a significantly larger stadium capacity, world-class hospitality spaces and associated substantial real estate development in the vicinity of the ground.”
Nottingham Forest currently leases the land from the council, but there had been just 33 years left on the existing agreement.
A lease extension to 250 years was seen as critical so the club could realise its plans to expand the stadium.
But the council asked for a larger sum for the lease earlier this year, and negotiations reached a stalemate.
There were reports that the council wanted a rise from £250,000 a year to around £1m, following the club’s promotion to the Premier League.
The council said declared effective bankruptcy in November last year, and said decisions would be made on financial viability.
