Liverpool FC has confirmed it will remain at its existing home at Anfield in a £150 million redevelopment.
Mayor of Liverpool Joe Anderson said the club wants to develop Anfield and regenerate the area in collaboration with social housing provider Your Housing and the City Council.
Anfield’s capacity is set to be extended by around 15,000 seats to 60,000, while Liverpool will also commit to building a hotel as part of the development.
The club has repeatedly switched between plans first proposed by architects AFL for a 60,000-seater stadium at Stanley Park 10 years ago and redevelopment at Anfield under three separate owners in the past decade.
Mr Anderson said: “North Liverpool, and in particular Anfield, is an area that has been neglected and overlooked for so long.
“Liverpool Football Club is an integral part of the Anfield area and will be an integral part, together with Your Housing and others, in actually shaping the future of Anfield.”
The club has been encouraged to consider ground-share proposals with neighbours Everton FC but supporters and owners of both clubs were reluctant to consider the idea.
The AFL plans were scrapped and replaced by those drawn up by American firm HKS after former chairmen Tom Hicks and George Gillett took over the club five years ago.
Mr Anderson said a commitment of around £30m-£35m of new funding would be made in housing redevelopment together with the registered social landlords.
Liverpool FC managing director Ian Ayre said: “We’re a business, we’re an employer, we’re a stakeholder and we’re a resident of Anfield.
“Everyone at the football club knows the importance of today and knows the importance of that area and how much regeneration means to it.
“We really welcome the opportunity to be part of this partnership. Having come together with Your Housing and Liverpool City Council over the last few years, we’ve made tremendous steps forward.
“I go on record as thanking Joe and his team for giving us the support they’ve given us to take – and make – the right decisions.”
He added: “Stanley Park is off the table unless there isn’t a solution here. We all believe there is a solution and we’re all working together to deliver that solution.”