The club plans to work in partnership with Sheffield Transport Sports Club (STSC) in Meadowhead to develop the ground, it has been confirmed.
Sheffield FC’s chairman Richard Tims had previously said he was looking at a new site after plans to relocate to the Olive Grove sports ground in Heeley fell through, but he would not disclose the location.
However, a banner saying ‘in partnership with Sheffield FC’ has this week appeared outside the transport sports club on Greenhill Main Road, near the Meadowhead Roundabout.
STSC manager Caroline Johnson said: “All we can say at the moment is that there are plans to work in partnership with Sheffield FC to develop the ground. There are all sorts of discussions taking place but nothing has been confirmed.
“Sheffield Transport Sports Club has been on this site since 1921, it’s part of the local community and we have no plans to move anywhere.”
Sheffield FC currently plays it home games in Dronfield, North East Derbyshire, but has long been planning to return to its birth city, where it hopes to build a stadium and a visitor centre to promote Sheffield’s proud footballing heritage.
The club recently announced it had signed a new investment deal with LSG Sports, which Mr Tims said would give it the ‘financial muscle’ to finally achieve that aim.
Mr Tims said: "We have an agreement to work together with STSC.
"It's been there a long time and needs a bit of investment. It's an iconic location in terms of being an entry point to the city.
"To have Sheffield FC working alongside them there would be fantastic for the community and the whole city, I think.
"The city council is keen and we hope to get the freeholder, Sheffield City Region, on board to make it happen.
"It's not about displacing any facilities. It's about improving existing facilities and adding to them.
"We'd like to build a stadium and create training pitches and a football education centre."
Sheffield FC, which plays in the eighth tier of the English football, was formed in 1857 and has been recognised by FIFA as the world’s oldest football club.