Scarborough Council has agreed to sell off part of the former McCain Stadium site in Seamer Road.
An urgent decision was taken on Thursday by council leader, Cllr Tom Fox, though no further information has been revealed at this stage.
In a statement the council said: “Scarborough Borough Council is pleased to confirm that it has agreed the sale of part of the former McCain Stadium land in Scarborough, which is one of the three enabling sites that will provide the necessary funding for the new leisure village.
“The sale therefore represents a major step forward in the progress of the development.
“The approval process included an agreement to give reassurance to Sport England that the council will provide a unilateral undertaking that the sales receipt from the purchaser of the land will go towards the leisure village development with Wrenbridge Land Limited.
“We are currently going through the approval process for Iconic Facilities grant funding of £2.2 million for the development from Sport England.
“Contracts have been exchanged with the purchaser of the land and the sales process is continuing.
“This is an important step for the development and we will be announcing further details in early January.”