Dulwich Hamlet FC will return to its ancestral home on Champion Hill, after reaching an agreement with Southwark Council and developer Meadow.

An agreement was reached following a meeting facilitated by Sports Minister Tracey Crouch and local MPs Helen Hayes and Harriet Harman, marking the end of long a dispute between the council, developers, and the club.

Dulwich Hamlet FC was evicted in March this year over alleged debts, after developer Meadow submitted a planning application for 155 flats and a new stadium for the site – which the council refused.

Southwark Council have agreed to lease Greendale, an astroturf pitch, to Dulwich Hamlet FC, and have agreed to discontinue with a compulsory purchase order of the Champion Hill grounds – a process it began after developers evicted the club.

The club will also invest in sporting facilities for the benefit of the wider community, as part of the agreement.

Southwark Council cabinet member for growth, development and planning, Cllr Johnson Situ, said: “I am pleased we have been able to reach an agreement that will allow Dulwich Hamlet FC to return to their rightful home at Champion Hill and provide them with some stability, as well as securing much needed investment in local sporting facilities.

“This has been a difficult decision for the council, balancing multiple interests, however our principal objective has always been to support the club and to ensure its long term future. This is hopefully the first step towards that goal.

“The overarching vision for Greendale remains the same, with significant green open space remaining under council control so that we can ensure it meets the needs of the local community. The difference now is that the astroturf area will be managed by DHFC, who will invest in it to bring it up to a decent standard for use by the community and club alike.”

In a joint statement, Dulwich Hamlet Football Club, Southwark Council and Meadow wrote: “The new lease of Greendale would allow DHFC to use the AstroTurf pitch for all its sporting requirements including any match day use and such other community and sporting uses as DHFC may undertake from time to time.”

Supporters’ Trust co-chair, Duncan Chapman, said: “The club and the trust have been working as one on this and are both delighted that Dulwich Hamlet will be coming home to where, over many years, it has grown to become such an important part of our local community.”