Inter Milan and AC Milan are reigniting their joint effort to build a new stadium near the historic San Siro, the city of Milan announced Tuesday.

Milan Mayor Giuseppe Sala, along with representatives from both clubs, met with Italy’s culture and sports ministers to discuss plans for constructing a new stadium in the San Siro district while also revitalizing the surrounding area.

The city noted that this new proposal includes repurposing the current San Siro, a key issue that derailed the clubs’ previous project last year, which would have involved demolishing the iconic venue.

Milan officials added that after a meeting that left all parties "satisfied," the clubs will begin the lengthy bureaucratic procedure necessary to complete the project.

Tuesday's announcement is the latest episode in a long-running saga surrounding the San Siro, which opened in 1926 and has since been renovated several times, most famously for the 1990 World Cup.

Inter and Milan have been longing for a more modern arena to increase revenues, and last month rejected a proposal to modernize and restructure the current stadium, which is owned by the city.

Earlier this year, AC Milan bought land in the suburb of San Donato Milanese, southeast of the city, as part of a plan to move outside the official boundaries of Milan in hopes of more easily gaining building approval.

Reigning Serie A champions Inter had their sights set on the towns of Rozzano and Assago, just south of Milan, after exploring the possibility of building on former industrial land in the populous northern suburb of Sesto San Giovanni.

The uncertainty surrounding the future of the San Siro led to the 2027 Champions League final being moved away from the northern Italian city, which is the country's economic capital.

In 2026, San Siro will host the opening ceremony of the Milan-Cortina Winter Olympics.