Wakefield Trinity have agreed a deal to remain at their Belle Vue home in 2018 and accepted plans to redevelop the ground for 2020.
Last month Trinity threatened to take Wakefield council to court over what they called an "uneconomical" plan to overhaul the stadium.
Chairman Michael Carter said that after a "positive meeting" the club now understand the proposals "more fully".
He added: "We now accept that there is no basis for any legal action."
The club's future looked uncertain after talks over a new ground broke down, as Belle Vue, which has been their home since 1895, does not meet minimum ground standards for the top flight.
Wakefield finished fifth in Super League in 2017.