Truro City have cancelled plans to share Torquay's Plainmoor ground next season while they construct their new Silver Bow stadium.
Truro will stay at their Treyew Road home until Silver Bow is built, with construction due to start in October.
The club has also confirmed that ground improvements at Treyew Road to allow them to compete in the play-offs will be finished by a 31 March deadline.
Truro are currently fourth in the National League South table.
"Staying in Cornwall next season was always the preferred option but the club had to be realistic and accept that this looked to be unachievable," the club said in a statement.
"However, after a lot of hard bargaining with a number of parties, a compromise has been reached which will allow the club to remain at Treyew Road.
"The club would like to extend its thanks to Torquay United for the offer to share it's facilities with Truro City."
Despite plans to move into a new stadium, Truro were forced to spend £50,000 upgrading Treyew Road to meet the FA's 'Grade B' standard for grounds, or they could have been removed from the division next season.
The construction of Silver Bow is expected to take eight months and be finished in around June 2017.