Peterborough are close to an agreement with the city council regarding the proposed redevelopment of London Road.
Posh want to improve the Moy's End of the stadium, increasing the capacity from 14,000 to 19,000 and incorporating a further education centre into the stand.
Peterborough chief executive Bob Symns said via a statement on the npower Championship club's official website: "Talks between Peterborough United and Peterborough City Council have taken another giant stride forward. "
He continued: "Complex negotiations on surrender and new lease options, together with future planning opportunities, are nearing closure for final sign-off.
"Both parties have spent many hours over a vastly extended period building a legal package that will incorporate current and future new stands, club ownership of the stadium and sustainable financial arrangements that will conclude and define the football club's future.
"The time that it has taken to reach this point in our talks has been particularly frustrating for all concerned - ourselves, the City Council and not least our supporters.
"We would all have envisaged the demolition and rebuild would have been well under way some time ago, but it has been the legal detail that has taken up so much time.
"Pulling everything together under virtually one lease/contract became massively complex and time consuming.... hence the testing delay, but the end is nigh."