The sale of Crowley Park, home to Galwegians RFC for 57 years, has fallen through.
England-based property developer Neil Armstrong has withdrawn from the sale nearly two years after an agreement was reached, during which time the club had sought permission to develop a new facility in Oranswell.
According to Galwegians RFC, the "purchaser recently requested the return of his deposit, due to the fact a binding contract was not concluded between the two parties".
As a result the clubs says it has been left in a "difficult"position as it is not servicing a substantial debt".
The club, which boasts some 400 members and fields a senior team in the All Ireland League, has sought planning permission to build a major new rugby facility in Oranswell, incorporating three pitches, including a synthetic training pitch, and an all-weather pitch with a running track.
The planning application has been with the county council since last autumn, and the club had been expecting a decision in February. However, it is understood planners have requested more information in relation to some issues before making a final decision.
After An Bord Pleanala refused permission for the club to build new grounds at Brownville a decade ago, this latest twist will come as a huge disappointment. Despite members originally having been divided in the decision to purchase the lands in Oranswell, they still had high hopes of building a modern facility fit for rugby and sport in the city.