The future of Millwall’s stadium looks safe after Lewisham mayor withdrew his support for the compulsory purchase of land surrounding their ground.

The club had admitted they could have been forced to move out of The Den, possibly into Kent, if Lewisham council went ahead with a plan to purchase areas around the stadium and sell them to offshore property developers Renewal.

Mayor Steve Bullock, after facing calls for his resignation, has now said the compulsory purchase order should not proceed, citing concerns raised about the club’s community trust and academy.

Development proposals around the stadium included 2,400 homes, community facilities and a new railway station.

Non-executive Lewisham councillors backed a call for an independent inquiry into the CPO and Surrey Canal Sports Foundation (SCSF) on Monday, January 23.

This was after it was revealed that SCSF, a charity set up by Renewal, made inaccurate claims about £2 million of funding from Sport England.

Mayor Bullock - who has been a director of SCSF since December 2012 - said: “Information has been provided by Millwall to the council in the last few weeks that raised two concerns that appear not to have been addressed previously in regard to aspects of the future operation of the Community Sports Scheme and the operation of Millwall's own academy.

“I have always been clear that Millwall must be at the heart of the development and it is my view that these concerns need to be thoroughly addressed the CPO should not proceed and that all parties concerned should enter discussions to identify an agreed way to achieve the regeneration of this area while resolving these concerns.

“Other issues of concern have been raised in relation to the operation of the SCSF and, as soon as these concerns were raised, I wrote to the council's chief executive asking that an independent inquiry take place into them and I cannot comment further until the inquiry reports.”

Bullock said he had not made any public comment on the proposed CPO "because of my involvement with the Surrey Canal Sports Foundation".

Millwall have welcomed a review into the seizure of land around The Den but said the investigation must be fully independent.

Club chief executive Steve Kavanagh said in a statement: “We welcome the announcement of an investigation.

“We look forward to seeing the full details of how an independent investigation will be conducted and we assume that we will be fully and directly involved in the process.

“We do not feel that our comments and objections to the whole CPO procedure have been listened to by independent minds so far.

“We would challenge the independence of the investigation if it were established and given terms of reference by the council's chief executive, mayor or cabinet.”

Councillor Alan Hall, chair of the overview and scrutiny committee who called for the independent inquiry, said the council still needs to make the final decision public.

He said: “I was at Millwall when I heard the news. It’s terrific news for the club at the moment.

“I think it’s a victory for common sense and we have to implement that decision and establish the independent inquiry into the development.

“The council need to rescind the decision quickly and in public. They can say anything they want, it’s not the same as making a decision.”