Northampton Borough Council lent money to Northampton Town FC but work on the Sixfields Stadium stalled and the club has since been taken over.
The council was in talks with the new owner about land around the ground.
Mary Markham, Tory council leader, said: "The debt is still there and we will recover [it] through the land."
The council, which owns the stadium site, made the deal with former club chairman David Cardoza so parts of the stadium could be rebuilt.
Land around Sixfields was meant to be developed for leisure by the club to fund the repayment of the loan.
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Construction work on the East Stand halted and the club said it could not repay the loan.
The Buckingham Group, which was constructing the East Stand, said it had carried out £3m of work for which it had not been paid.
It is in talks with the club's new owner Kelvin Thomas.
Mrs Markham said: "We will do all in our power to recoup the money and pursue the people involved."
A memorandum of understanding has been agreed between the council and Mr Thomas that would see Northampton Town's debt wiped out with the council acquiring the land around Sixfields for development in return.
The football club has been asked to comment.
A council has said it has received a "number of offers" on land it claimed in return for an unpaid £10.25m loan for football stadium development.