King's Lynn Stars are tantalisingly close to completing their 2013 line-up after they were given the green light to sign Niels-Kristian Iversen.

The British Speedway Promoters' Association have told Norfolk Arena chiefs that they are now free to open discussions with the three-time World Cup winner.

The long-running saga over the Dane's future came to a head on Tuesday when the BSPA's management committee stood by their original decision to allow Iversen to join the Stars on loan from his parent club Peterborough Panthers.

Lynn's fierce A47 rivals blocked the move by lodging an appeal, claiming the Stars had made an illegal approach, but now look set to face another season without the Speedway Grand Prix ace.

Stars co-promoter Jonathan Chapman said: 'King's Lynn were given permission by the BSPA management committee in December to begin talking to Niels regarding a team place for 2013.

'After the decision was made, the club decided to contact the Peterborough promotion to amicably move forward. Unfortunately all our talks and discussions were not taken in a positive light by Peterborough and they intended to appeal the decision. The club have waited and kept the matter private, even though it has been very unfair on the rider concerned.'

Having spent the past two seasons on loan at the Norfolk Arena, the 30-year-old had made it clear he only wished to ride for Rob Lyon's men when the season starts in March. Iversen even insisted he wouldn't ride in Britain if he couldn't return to Saddlebow Road – where he now looks likely to be lining up again next season.

'At the management committee meeting, the initial decision was upheld and that we were in the right,' said Lynn's co-promoter.

'Peterborough have no team place for Niels which is by their own admission, and the club have it in writing that they were prepared to loan out Niels, but only at double the standard rate.

'We have tried to be amicable for the best interests of the sport, and give Peterborough a chance that it goes out to the public in a positive light but unfortunately Peterborough, in my opinion, don't seem to care about PR or the rider earning a living.

'As a club we have never stopped a rider earning a living and we feel it's a shame that it's taken so long. After receiving double confirmation that we are in our right from the management committee, we will start negotiations with Niels this week with a view to getting a deal completed as soon as possible.'

Iversen became a Panthers' asset in 2005 but hasn't raced for the city club since 2010.