Chelsea’s £1bn redevelopment of Stamford Bridge has received further backing after Hammersmith and Fulham council agreed to use statutory powers to overcome an injunction which threatened to derail the project.

The west London club were granted planning permission last year to demolish the existing 41,000-seat stadium, replacing it with a 60,000-capacity arena on the same site in plans endorsed by the Mayor of London.

Chelsea have been reluctant to place a cost estimate on the project but it could be £1bn, given the spending on similar-sized arenas in the capital and the complexity of the build.

Chelsea, who have been owned by the Russian billionaire Roman Abramovich since 2003, requested the intervention of Hammersmith and Fulham council in a row with owners of a neighbouring property. On Monday the council’s cabinet agreed to the request.

The Crosthwaites, the owners of the family home named in the documents, have taken out an injunction over a “right to light” which they say the new stadium would threaten – and Chelsea said the obstacle makes the project “undeliverable”. But the council has agreed to acquire an interest in land – owned by Network Rail and Transport for London – in order to engage section 203 of the Housing and Planning Act 2016, which would override the “right to light” principle.

There may yet be further legal challenges.