Ballybofey Utd has found a new home after they struck a deal with the Butt Hall Trust.
Ballybofey United Under-16 team
Both parties had been embroiled in a tense legal battle over the ground at the High Court.
The Butt Hall Trust had decided to sell the land for development by supermarket giant ALDI but Ballybofey claimed they had rights to the ground.
Now a deal has been done after the Butt Hall Trust agreed to sell a 3.4 acre site beside the local tennis club for €25,000.
A spokesman for the football club said they had up to nine teams playing at the club and they were confident the future was now bright as a result of the deal.