Another hurdle has been cleared which could lead to the sale of the former Millicent Italian Social Club building and nearby soccer playing fields.

The November monthly Wattle Range Council meeting accepted a staff recommendation without comment to remove the community land classification over the two areas.

Council will now make a formal application to the Environment and Water Minister to request the land be transferred back to the care and control of his department.

Falling membership numbers and rising maintenance bills at the Short Street facility prompted the Millicent Italian Club to approach the council in 2015 to take ownership of the building.

Built in 1978, the land was leased to the Italian Club on a 100-year lease by the then Millicent District Council.

The building includes a stage, commercial kitchen, multi-use parquetry floored auditorium and rear room that can be opened or closed off from the main facility.

The Millicent United Soccer Club vacated the area in the late 1980s and moved to a purpose-built pitch and clubrooms at McLaughlin Park.