Oldham Athletic Football Club (OAFC) has announced plans to relocate to a new stadium as part of a new £20m regeneration project, which to be carried out in partnership with Oldham Council.

Plans for the 30-acre (12.1-hectare) Failsworth site include a 12,000-capacity venue to replace the club's current Boundary Park ground, as well as community sports facilities and corporate/leisure developments. The council's cabinet has approved proposals to merge land off Broadway with the site of the Lancaster Club, which is set to be acquired by OAFC from BAE Systems. However, the plans are subject to the football club receiving detailed planning consent.

Architects will now be commissioned by OAFC to draw up comprehensive plans for the scheme following the cabinet's decision, and a planning application is expected to be submitted for consideration by the end of the year. If approved, a two-year conditional development agreement to start construction work on the council-owned land will be signed by the club, which will be followed by the signing of a long-term lease when complete.

The development project would be part-funded through the sale of the Boundary Park site to a private housing developer, although talks are continuing with the Pennine Acute Trust - operator of the Royal Oldham Hospital - for the provision of homes for key workers. Simon Corney, OAFC's managing director and co-owner, said: "We haven't taken the decision to leave Boundary Park lightly - it was our preferred option to redevelop it, but the credit crunch means the land value and market conditions have diminished to an extent which makes that scheme no longer economically viable.

"In its current state, Oldham Athletic is dying. Our revenue fell 20 per cent again last year, and we're now attracting attendances on a par with many League Two clubs. This new vision gives us an opportunity to provide a facility that will create new revenue streams to make the club viable and self-sustaining." Council leader Howard Sykes added: "There will obviously be plenty of talking to be done with local residents and affected groups - some of which is already underway - and I am confident that their views will be reflected in any final proposal for the good of the whole community.

"There will be understandable disappointment in some quarters about the club moving away from Boundary Park but sometimes you have to dare to dream. This represents a fantastic opportunity for the borough as a whole and is a bold and imaginative step forward." A new club facility for Failsworth Dynamos Football Club could also be incorporated into the scheme, while the club is also set to provide compensation plus 20 new allotment plots for The Allotment Society.