Bayern Munich have cancelled the contract with former Bundesliga champions TSV 1860 Munich at their Allianz Arena stadium.
The cancellation follows talks between 1860's managing director Markus Fauser, and Jan-Christian Dreesen, Bayern's finance director and vice chairperson.
"The agreement precludes 1860 from returning to the Allianz Arena at a later date," Bayern announced in a statement.
Since 2004-05 both Munich clubs have staged their home games at the Allianz Arena. 1860, the first Munich side ever to win the Bundesliga in 1966, previously held an equal share in the stadium, which was built for the 2006 World Cup in Germany. Bayern acquired those shares in 2006 for €11 million, but allowed their neighbours to stage homes games as a tenant.
1860 are bankrolled by Jordanian investor Hasan Ismaik, who hired former Porto coach Vitor Pereira last December, promising to lead the former European Cup Winners' Cup finalists back to the top echelons of the game.
However, despite heavy investment, 1860 were relegated from the second tier in May and immediately dropped another level for failing to transfer about €5m to the German Football Federation (DFB) for a third-division licence.
Amid chaotic scenes on and off the pitch, former Liverpool CEO Ian Ayre quit on the eve of 1860's relegation showdown with Regensburg after only eight weeks at the club. Ayre, 54, had left his role at Anfield in February to become general manager in Munich, but said constant battles between the club's shareholders had drained him.
Having staved off bankruptcy on Tuesday, 1860 are now preparing for Regionalliga fourth-tier football this season at the Grunwalder Stadium, where they played their home games when winning the Bundesliga title over 50 years ago. 1860 start their Regionalliga campaign at the Grunwalder in the suburb of Giesing against Wacker Burghausen on July 21.
"We thank those responsible at FC Bayern for their collaboration and cooperation which played a major part in us starting the new season positively," Fauser said.
Bayern CEO Karl-Heinz Rummenigge said during a news conference on Wednesday: "1860 are happy that the internal problems are solved. Playing Regionalliga games in a stadium with 75,000 capacity would be absurd."