Senior councillors are being asked to approve a refinancing proposal that will allow the club to buy the ground's Winter Shed from Leeds Cricket, Football and Athletic Company Ltd (LCFA), Headingley's former owner.

The ground floor of the shed is the company's remaining interest in the stadium.

Yorkshire's plan is to demolish the shed – which has been criticised as an eyesore – erect a temporary stand for this summer's international matches and, in the longer term, work with Leeds Metropolitan University to develop a new pavilion, teaching facilities and media centre on the site.

The pavilion would include offices and changing rooms, while its hospitality suites and media centres would be designed for use as lecture theatres and teaching spaces.

A report to next Wednesday's meeting of the council's executive board says acquiring the shed is critical to the club's scheme and it recommends that councillors give consent for the necessary financial transactions.

The approval of the councillors is needed because of conditions attached to an agreement struck in December 2005 when the council loaned Yorkshire £9m to buy Headingley from LCFA.

The report says all due repayments on the loan have been made and £8.355m is currently outstanding.

It says that in deciding whether or not to approve the financial transactions, councillors have to consider any possible impact on the council's loan and the need for the club to continue to develop the ground.

While the report acknowledges that the club's intention to replace and extend its bank debt will add to its "balance sheet debt position," it says the arrangement recognises outstanding liabilities and gives the club total ownership of the ground.