East Lindsey District Council is prepared to hand over a site in Woodhall Spa to the community - ending fears it could become a housing estate.
Residents mounted a campaign to stop housing on the Rally Field after developers targeted the site.
The company involved will now build properties on a neighbouring site but there have been on-going fears about the future of the Rally Field.
It borders the village cricket club and is used by a number of local groups and organisations - including Jubilee Park and the 40s Festival.
The parish council has held talks with ELDC who own the field.
Now, parish council chairman David Clarke has revealed ELDC is prepared to hand over the field to the community.
The parish council is now planning to hold talks with the various groups and organisations to reach some sort of formal agreement.
Coun Clarke said: “ELDC’s decision effectively means the Rally Field will be protected for community use and planning permission could only ever be approved in very exceptional circumstances.”
Coun Clarke revealed a request by St Andrew’s School to use the Rally Field as car parking has been rejected.
Coun Graham Keegan paid tribute to residents who had organised the campaign to stop development and said they should be at the ‘forefront’ of talks about shared community use.