Italian football giants Milan and Inter are reported to have received the support of global finance groups JP Morgan and Goldman Sachs as plans for their new shared stadium gather pace.

The Serie A clubs filed a feasibility study and new economic and financial plan with Milan’s authorities on Friday in which they sought to resolve concerns laid out by city chiefs earlier this year regarding the revamp of the Stadio Giuseppe Meazza.

While project leaders did not include the finer details of the updated financial plan, news website Milano Finanza is reporting that the clubs have received the support of JP Morgan and Goldman Sachs.

Milano Finanza reports that the investment in the project – centred around a 60,000-capacity arena – is expected to be $1.25bn dollars split equally between the two clubs. The report adds that the definitive go ahead could arrive between October and November 2021.

The new proposal, presented to the authorities on Friday, envisages a significant reduction in real estate volumes compared to the initial proposal, for a total of 145,000 sqm. This is a significant reduction on the 180,000 sqm which the City of Milan took issue with in June 2020.

The clubs also reiterated their commitment to sustainability and public interest with an urban regeneration aimed at creating a district alive for 365-days a year, dedicated to sports and entertainment. The project would feature a running track, cycle track, open-air gym, skateboard park, climbing wall, zip line and sports museum, all of which would be free for visitors.

A spokesperson for the project added: “Today’s filing marks an important step forward. The documentation filed today will be reviewed by the technical offices of the City of Milan, which will then be in a position to issue a new unconditioned declaration of public interest.

“In the months ahead, the clubs will prepare detailed design drawings, at considerable expense, in preparation for the final stage of approval: the declaration of public utility, in which the clubs look forward to engaging with the City of Milan, the Lombardy region, and all other stakeholders in support of this exciting project.”

In January 2019, the clubs presented new plans for the future of the Meazza, outlining how the venue would be transformed into a destination for sports and entertainment events. The clubs had previously said they were prepared to work on alternative proposals for the San Siro but maintained their discomfort at retaining the stadium as a venue for professional sports if a new facility is developed.

The city council gave plans for a new stadium a “conditional yes” last October, with assurances needed on regeneration plans for the San Siro before the proposal is given the all-clear. The development came after the two clubs announced in September 2019 that Populous and Manica/Sportium had been shortlisted to design a new stadium that they would share.