The Football Association’s proposed plan to sell Wembley Stadium is now one step closer after Sport England expressed conditional support.

Sport England’s consent is legally required because the organisation contributed £120m of national lottery funds towards the £750m rebuild of Wembley 20 years ago.

It has told the house of commons digital, culture, media and sport committee that it sees benefits in the FA’s plan to invest the projected £600m proceeds in grassroots facilities, as long as Wembley’s sporting status is protected.

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The FA is in discussions to sell the national stadium to Fullham owner Shahid Khan for £600m.

If successful, Khan is likely to use Wembley as a European base for his Jacksonville Jaguars’ NFL season from September to December or January.

Sport England suggests that if the necessary safeguards are in place it will give consent and provide grants to boost the FA’s investment. “Provided appropriate protections can be agreed it appears that there is an opportunity to co-invest new funds strategically, for the benefit of football, and the wider community, at the grassroots or community level,” it states.

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Consent to a sale is also required from the Greater London Authority, whose predecessor the London Development Agency awarded a £21m grant towards the Wembley project, and from the government. Sports Minister, Tracey Crouch, is due to give evidence to the committee.

The FA is keen to capitalise on England’s run to the World Cup semi-finals by selling Wembley and using the proceeds to invest more than £2bn into grass-roots facilities over the next 20 years.

The FA want to capitalise on the Three Lions’ World Cup success by investing in local grass-roots facilities

FA surveys have found that after severe budget cuts to local authorities by the Conservative government, only one in three pitches in England is “of adequate quality” and that poor facilities are always “the number one issue” for grassroots clubs and players.

Sport England’s consent to a sale of Wembley will also be conditional on being satisfied that Khan or any other buyer, and any subsequent buyer, is “an appropriate person to own the national stadium” and has a sound business plan.

The original funding deal ensured Wembley must remain a centre of sport, with priority given sporting events like the FA Cup, England internationals and league playoffs rather than music concerts and other entertainment events.