The Recreation Ground has been the home of Bath Rugby for 122 years.
In a statement, Bath said: "Bath Rugby is delighted with the decision of the Charity First-Tier Tribunal, which re-opens the door to redevelopment at the Rec.
The decision of the Charity First-Tier Tribunal, dated 14 December 2016, relates to a revised Scheme for the governance of the Bath Recreation Ground, including the use of the Recreation Ground site."
Should Bath get their new and improved ground, it will have a capacity limit of 18,000 with the Rec currently being able to occupy 14,500.
Tarquin McDonald, Bath Rugby Managing Director, said, “The Club is delighted with Wednesday’s outcome and is excited to be able to move forward. The Charitable Scheme is effectively a set of guidelines for how the landlord, Bath Recreation Ground Trust, may operate the site. Following this decision, the Trust’s powers have been clarified, including its ability to lease the Club additional land for redevelopment.
“After a lengthy period of appeals and counter-appeals, we look forward to focusing once again on bringing forward development proposals for this unique site. We remain committed to creating something very special in the heart of Bath; and we look forward to working closely with the Trust, the Council, residents, our supporters, and all key stakeholder groups in the New Year.”
The Bath Rugby Trust must provide for the Rec to be used for "outdoor recreational facilities for the benefit of the public" and should ensure it is principally used for "games and sports of all kinds" but not show undue preference in favour of any particular game, sport, person, club, body or organisation.
Along with this, The Trust shall not use the Rec otherwise than as an open space, but it does not have to be kept in its present form.
As "absolute owner", the Trust can sell, lease, license or otherwise dispose of all or any part of the Rec.