Cambridge City’s Milton Road ground could be turned into a housing development after a planning application was submitted to Cambridge County Council.
The move will be negotiated with the club’s landlord Cambridge City Football Ground LLP with the Zamaretto Southern League Premier Division side in discussions with Newmarket Town Football Club over a potential groundshare.
Cambridge chairman Kevin Satchell told The Cambridge News: "We do support the application as it will mean we get some cash, which will pay for stands at Newmarket, although it’s not enough money for a new ground.
"It’s very sad and disappointing that this has to be done but the club has not been perfect in its financial dealings over the years, like many small clubs in England.
"It’s being going downhill since the 1980s when we sold the front end of the stadium."
A spokesman for the club and landlord added: "The application was made jointly by the club and the landlord, which is a London-based investment partnership.
"I think what people have to understand is the site has a bit of a history and with that backdrop, we want to move on confidently and look forward to the future."