The stalled purchase of charity-owned land in a Staffordshire village may now go ahead after the parties finally reached agreement.

The future of a planned play area on the Glebe Land, Whittington, near Lichfield, had been at stake.

This was because of a dispute between owners St Giles Hospice, and would-be buyer Whittington and Fisherwick Parish Council over the price. In January, the council made an offer based on an independent valuation which indicated that the two-acre site was worth £8,500 an acre.

The sale stalled after the charity’s own surveyor valued the land at close to £40,000 – a figure the parish council could not afford.

As a charity and a parish council, both parties are obliged to seek the best deal possible, meaning negotiations dragged on and the planned village recreation area was thrown into doubt.

A selling price has not been revealed, but both parties have now confirmed they have reached an agreement – subject to contract – that will allow the sale to proceed and the play area project to go ahead.

When the hospice originally bought the Glebe Land from Lichfield Diocese last year it was on the understanding that St Giles would then sell back just over two acres to the council.

Some villagers accused the charity of being greedy for demanding such a high price, but St Giles said negotiations had been “cordial and purposeful” at all times.

In a statement, the hospice said: “Although extensive negotiations have already taken place, a number of details remain to be resolved and the sale will proceed only when they have been finished.

“The hospice has agreed in principle to sell to the parish the major portion of the Glebe Land for development into recreational and sporting facilities for the community.”

John Smith, chairman of the council, said: “We are delighted to have secured this outcome and now look forward to resolving the outstanding issues and to the development of the site for much-needed recreational facilities for the village.”

Peter Holliday, chief executive of St Giles, said he was happy that negotiations were finally bearing fruit.

“It had always been our intention that the village should enjoy the majority of the Glebe Land.”