Hammersmith and Fulham Council has vowed to do all they can to prevent Chelsea leaving Stamford Bridge.
The council, who are keen for the Blues to remain within the borough, revealed that they will "work closely" with the club regarding plans to expand their current home.
The news comes a week after owner Roman Abramovich failed in his bid to purchase the freehold of the club's current home, seen as a precursor to a move to a new 60,000-seater stadium.
"We recognise that all our clubs will need greater capacity to accommodate growth in their fan bases and that new financial fair play rules necessitate generating extra match-day revenue to remain competitive with the leading English and European teams," read a statement from the council.
"The council now proposes to examine whether there are planning options to expand Stamford Bridge to accommodate a larger capacity, recognising that such a project must be economically viable, benefit local businesses and not unreasonably affect residents.
"We look forward to working closely with Chelsea FC and all local stakeholders as soon as possible to examine the options of redeveloping Stamford Bridge."
Fulham were recently granted permission to expand Craven Cottage by the same council.
