Meeting on January 16 the Policy and Resources Committee agreed to negotiate a deal with the club.
A council report says the in-principle agreement was crucial to enable the club and council to present a positive case to the Public Inquiry into the stadium, starting February 18.
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"Everyone should be aware that no council in future will be able to do any more to support the club than we have done."
Council leader Ken Bodfish said "The council is demonstrating clearly its support for the club. We want to progress the stadium as soon as possible. It will not only provide a home for the club but a range of community and economic benefits."
Council officials stress that the Albion need to provide a convincing business case to persuade the government to grant planning permission. A robust financial plan would also be needed for the government to permit the council to release the land.
The council report says 600 jobs would be created by the development. Community benefits include a study support centre, learning skills and training centre, a sports science unit and conference facilities as well as a major venue for sport and entertainment.
Negotiations are continuing with other owners of land at the stadium site including Brighton University and East Sussex County Council