The Partenopei have made their final rent payment, meaning club president Aurelio De Laurentiis can now begin the process of purchasing and renovating the arena
Partenopei president Aurelio De Laurentiis had threatened to quit the Serie A club and take Rafael Benitez and his players to England because of his frustration at the council's alleged reluctance to allow him to purchase and then renovate the 60,000-seater arena.
However, city mayor Luigi De Magistris announced that work would be able to commence on the San Paolo once Napoli made their final rent payment - which the club now claims to have done.
"SSC Napoli announces that it has paid the balance of its outstanding debts to the City of Naples," read a statement posted on the Partenopei's official website on Monday.
"Indeed, at 11:12 this morning, the club made a payment to the city of Naples for the sum of €6,232,792.71, including VAT.
"The payment was made less than 24 working hours after the receipt of the payment request, which was faxed on Friday afternoon, April 4.
"With this transfer, Napoli has paid in full the amount due to the city, up until February 28, 2014, the last payable period under the licensing agreement with the city of Naples."
The San Paolo opened in December 1959 but has not undergone any significant redevelopment work since being upgraded for the 1990 World Cup.