Parish councillors in Woodhall Spa hope to become involved in talks over the future of a “valuable community asset.”
Councillors have welcomed a decision by Waterloo Housing to pull out of a proposed development on the Rally Field.
Instead, homes are likely to be built on a nearby site after residents failed with an official application for village green status.
The Rally Field is a vital facility for neighbouring Jubilee Park and helps host a number of important village functions.
Trustees of a company which runs Jubilee Park have already indicated they want to take over the site on a leasehold basis from owners East Lindsey District council.
However, parish councillors are keen to have their input into the long term future of the Rally Field.
Council chairman David Clarke said he was willing to work with trustees .
He stressed councillors shared the same goals in that they wanted to see the site preserved as a protected green space.