Welton Manor Park playing fields, in Welton, are the subject of redevelopment plans by the village's football club and parish council which could cost up to £600,000.
West Lindsey District Council has agreed in principle to provide £100,000 from a cash pot for sporting projects in villages near Lincoln, if the two groups can secure the remaining funding within the next two years.
According to planning documents, the village football club runs more than thirty teams but some have to play in nearby areas due to a lack of facilities at the playing fields.
This situation is believed to be 'hampering' the club's development and prevents it from offering opportunities to women and disabled footballers.
Welton is viewed by the Football Association as a 'strategic area' for developing the game within the county and improving the site is expected to help this progress.
Welton-by-Lincoln Parish Council has been working in partnership with the football club for a revamp of the site, which aims to include new football pitches, changing rooms and accommodation for a number of sports activities plus meeting rooms.
Clerk to the Parish Council, Mrs. Julie Murray is reported to have said financial help from West Lindsey would be of 'great benefit' to the proposal.
"It's a project which is really in its infancy at the moment and we are trying to raise some funds for it to go ahead.
"Several funding sources have been approached and West Lindsey is one of them. We have been talking about this project for two or three years. It's been something on the back burner for a while as we have been trying to raise funds."