A controversial agreement that could have put the future of Millwall FC in jeopardy has been officially binned.

The compulsory land sale around The New Den has been officially terminated and a new land sale agreement will be put forward which excludes Millwall FC and community trust land.

According to Lewisham Council, the move "paves the way for an increase in much-needed social housing for Lewisham residents to be built on the site."

Millwall FC has said it "warmly welcomes" the announcement that the agreement has been formally scrapped.

A club statement adds: "Millwall equally welcomes the announcement by Lewisham Council that the leases owned by the football club and its community scheme will be varied to allow Millwall to prepare development plans for the land around The Den."

An agreement between the Council and offshore land developer Renewal to create the New Bermondsey scheme and 2,400 homes had been heavily criticised by the club and its fans.

Following months of talks between the club, the Council, and Renewal, mayor of Lewisham Damien Egan confirmed the termination of the agreement in a statement on Twitter on Thursday evening.

He wrote: "Tonight we’ve formally terminated the old Millwall land sale agreement.

"I’m delighted we’ve agreed a way forward. Thank you Millwall FC and Renewal for working so hard this past year.

"Millwall has a long history in Lewisham - this helps the club grow and brings more social homes."

He added in an official statement: "It will bring jobs, housing and a new train station to an area currently under resourced.

"Over the past year, positive and constructive talks have been taking place between the Council, Renewal and Millwall Football Club to agree a way forward."

The termination of this land sale agreement secures Millwall FC's position at The Den.

In March, the club made fresh calls to Lewisham Council to lift the conditional sale agreement while it worked to make its own proposal for the site.

Club Chairman John Berylson said excluding the club in development plans “threatened our long-term future in the borough.”

Egan said: "The regeneration of the area is an exciting opportunity for Lewisham. Our priority is that it must deliver more social homes, a new train station and have community support."