AFC Wimbledon has agreed contracts to sell off its current ground as it awaits final planning permission to start work on its proposed new stadium development in Merton.

The Dons Trust – AFC Wimbledon’s owner – has exchanged the contracts for the sale of Kingsmeadow with Chelsea FC, which intends to use the ground for its youth and women’s teams.

Funds raised by the sale of Kingsmeadow will go towards the building of the new stadium, but the deal with Chelsea will not be finalised until final planning permission has been achieved.

As part of the deal, AFC Wimbledon will make a “substantial donation” to Kingstonian – the team it shares the ground with – to secure another ground near the Kingston area.

“The deal is a major milestone for us,” said AFC Wimbledon chief executive Erik Samuelson. “The proceeds of this deal are an essential part of the financing of the new stadium. The vision of a return to Merton, with all the community benefits it also brings, is now becoming very real.”

AFC Wimbledon's progress on the pitch received a boost last week when the team won the League Two play-offs to reach League One – the third tier of English football. The club was founded in 2002, after Wimbledon FC was moved to Buckinghamshire and renamed MK Dons.