Shelbourne want to withdraw from the deal to join Bohemians at Dalymount Park and have submitted a proposal to buy Tolka Park from Dublin City Council.
Shels bosses met with DCC earlier today over the issue, with a view to redeveloping their home in Drumcondra as a multi-sport stadium.
DCC bought Dalymount Park six years ago in a deal that got Bohs out of debts worth €7m.
The plan was that Shels were to join their northside rivals at a newly-built Dalymount Park with a 6,000 capacity in the coming years.
While the new Dalyer was being built, Bohs would play at Tolka Park - and once it was finished, Tolka Park was to be demolished and the site used for housing.
However opposition to the plan has been growing, with the 'Save Tolka Park' protest gaining traction and keeping the view of disaffected Shels supporters in the public eye.
New Reds boss Damien Duff is also in favour of the club remaining at Tolka.
Now DCC have agreed "in good faith" to examine the Reds' proposals, with further detail on the plans expected from the club within the next fortnight.
A further meeting between the two parties will then take place, but DCC has stressed that it "would like to reaffirm" the commitment in place to go ahead with the Dalymount Park project in Phibsboro.
Six years ago, DCC bought out the legal interests of various parties in both Dalymount and Tolka Park as part of its strategic plan to develop a municipal stadium at the former venue.
That was done, stressed a DCC statement today, "to ensure the viability of League of Ireland Football on the northside of Dublin".
The statement continued: "Since acquiring both grounds, significant costs have been incurred by the City Council on an annual basis to ensure that both stadiums meet the required League of Ireland stadium certification.
"The City Council is willing to examine the proposal.
"However, it would be based on a cost recovery model for expenditure incurred by the City Council and a firm commitment from Shelbourne FC that Tolka Park can be re-developed in a reasonable period and that adequate finance is in place.
"We understand that the proposals will have no financial implications for either the City Council or the State.
"Dublin City Council would like to reaffirm its commitment to developing a municipal stadium at Dalymount Park.
"We are continuing to work with all stakeholders including both clubs, the Government and local community groups to develop a modern municipal stadium."
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