Southampton plan to revamp their St Mary's Stadium and develop the area surrounding it into "a leading sports and entertainment destination", the Premier League club announced on Friday.
Southampton, who are rooted to the bottom of the standings with five points from 15 matches after earning promotion from the second-tier Championship last season, play their home games at St Mary's which is located on the banks of River Itchen.
"Southampton Football Club and Southampton City Council are pleased to announce the signing of a Memorandum of Understanding (MOU) outlining a transformative partnership to explore the redevelopment of the St Mary's Waterfront area," the club said in a statement.
"This landmark collaboration aims to create a premier sports, leisure, and entertainment offer along the South Coast, benefiting residents, visitors, and the broader community.
"The MOU establishes a framework for joint planning and development, as Saints and Southampton City Council work together to transform the Itchen Riverside and St Mary's Waterfront district into a vibrant, year-round destination."
Southampton added that the plan included an expansion of their 32 384-seater stadium, but did not specify how many seats they would be adding.
"For the club to thrive and survive in the Premier League, we must increase our revenue streams, and developing the St Mary's Waterfront area is central to achieving that," Southampton CEO Phil Parsons said.
"In turn, a successful football club at the highest level brings enormous benefits to the city, including increased tourism, investment, and civic pride."