A bid for a judicial review into a hotel development at Hampshire's Rose Bowl cricket ground has been withdrawn.
Eastleigh Borough Council said it had reached an agreement with three hoteliers who brought the case.
The consortium, who were not involved in the ground redevelopment plans, challenged the council's decision to spend £32m of public money on the project.
After a first bid for a judicial review failed they appealed.
The plans are part of a £48m revamp of the West End venue which will make it the UK's second largest Test ground.
The 175-bedroom complex is part of an overall project which will also see the construction of new stands and an 18-hole championship golf course.
No decision yet
The council said: "The hoteliers are satisfied that the council has listened to their concerns and that appropriate measures have now been taken to address these concerns and ensure the viability of the project."
It said a final decision on whether the hotel development would go ahead had not yet been taken.
The statement continued: "Due to the delay which has been caused by the judicial review and the consequent need to update the financial projections, the decision to finance the project will be subject to a further vote of full council.
"Assuming that support remains for the project, and the due diligence exercise is completed without complications, the council's involvement in the hotel can proceed."
The council has said the project would create 200 jobs and the cost would have no impact on taxpayers.