Liverpool have taken another significant step towards their stadium redevelopment by legally committing to the proposed £260m regeneration of the Anfield area.

Tom Werner, the club's chairman, has signed the heads of terms document that will lead to a formal contract being entered into by the football club, Liverpool city council and Your Housing Group, the three parties involved in the proposed scheme for the overall area. The results of a recent consultation exercise on the project will be presented to the council's cabinet next week when Liverpool's plans for Anfield stadium – a rebuilt Main Stand followed by a new Anfield Road End – will be unveiled to local residents and supporters.

Werner, who signed the legal document with the mayor of Liverpool, Joe Anderson, and Your Housing's chair, Kathy Cowell, said: "We are pleased that great progress has been made with the city council and Your Housing Group about the plans for the regeneration of Anfield and the unique opportunity that gives us to stay at Anfield.

"We have always maintained that we need certainty in order to progress with our plans and the heads of terms is an important step on that journey. We are optimistic that we will realise our plans for the expansion of Anfield and look forward to the next step of the planning process."

The heads of terms signing enables Liverpool, the city council and Your Housing to progress with their respective parts of the Anfield regeneration scheme with the security of having a legal agreement in place. Anderson added: "This is another key step along in the delivery of the Anfield project, which will bring a huge improvement in quality of life for many thousands of people. The signing today sends a very clear message to the people of north Liverpool and the wider city: a brighter Anfield is coming."