Tottenham Hotspur have been given the go-ahead to build their new stadium after a local firm admitted defeat in its objections to the £400 million development . Archway Sheet Metal Works launched a legal challenge to a compulsory purchase order ( CPO ) rejected last month but could have appealed . The firm has now decided not to do so , it announced on Friday . How Tottenham 's new stadium will look for night games from 2018-19 season onwards . Archway Sheet Metal Works , which is located next to White Hart Lane on the last patch of land Tottenham needed for their stadium development argued that the compulsory purchase order was unlawful . Now that Archway have dropped their case , Spurs have the go-ahead for their new 56,000-plus capacity stadium at White Hart Lane . The company announced in a statement : 'We have always been willing to negotiate with the club on a reasonable and proper basis . 'We will continue to try to achieve a proper settlement by agreement if that is possible . ' Spurs have relocated more than 70 local businesses from the site , which is adjacent to the White Hart Lane home they have occupied since 1899 . By moving for what is expected to be the 2018-19 season , they will increase their capacity from barely 36,000 to 56,250 . Before then Tottenham expect to move elsewhere for at least one season , possibly alternating between Wembley and sharing with League One ( third tier ) club Milton Keynes Dons . The club also applied several years ago to move permanently to the Olympic Stadium but lost out to London rivals West Ham United . Tottenham striker Harry Kane ( centre ) rounds QPR goalkeeper Robert Green to score in Spurs ' 2-1 win . Spurs playmaker Christian Eriksen ( right ) tries a shot against QPR at Loftus Road on March 7 . Kyle Walker sees an attempt saved by Green as Spurs take on QPR in their last Premier League game .
Archway Sheet Metal Works have dropped their legal case against Tottenham . The business had tried to block plans for Spurs ' new £400m stadium . Instead , the local firm will agree a settlement package with the club . The new stadium will allow Spurs a 56,250 seater capacity .