The application for Millwall Lionesses' Women's Championship licence to be transferred to new outfit London City Lionesses has been approved in principle by the Football Association.
Millwall Football Club announced on Monday that the board and senior management of Millwall Lionesses were breaking away from the club to start up what would be known as London City Lionesses.
The men's club expressed their disappointment at the decision and said Millwall Lionesses would go on to operate through Millwall Community Trust.
A statement from the FA on Tuesday said: "The FA Women's Football Board has, in principle, approved applications made by Millwall Lionesses Football Club to (i) transfer its licence to participate in the FA Women's Championship to a new entity; and (ii) change its playing name to London City Lionesses F.C.
"Each application is subject to certain conditions being satisfied and we are working with the club to help ensure that all necessary approvals can be obtained and related steps completed before the commencement of the 2019/20 season.
"If the relevant conditions are satisfied, the team will continue to participate in the FA Women's Championship."
Millwall Lionesses finished bottom of the division this season having won one and lost 17 of their 20 league games. Last year they were saved from administration after nearly £17,500 was raised via crowdfunding.
Millwall's statement on Monday said: "Millwall Football Club regrets to announce that the board of directors and senior management at Millwall Lionesses have decided to become an independent entity from the end of this current campaign.
"This will mean the start of a new club, London City Lionesses, while Millwall Lionesses will go on to operate through Millwall Community Trust with its proud history and tradition intact.
"The club is disappointed that the Lionesses' current hierarchy have decided to become independent. Millwall have tried several times, over the course of the season, to arrive at a different outcome."
It added: "The Lionesses will always be a key part of Millwall Football Club. Their tradition and heritage is a source of immense pride and, through the Community Trust, more history can now be created.
"The club's aim, as always, is to ensure that there is a pathway for girls and women to play football at as high a level as possible and this will continue to be the case with a new-look Millwall Lionesses."
A Millwall spokesman said with regard to the team set to operate through the Community Trust that they were "looking to enter into the FA's structure in the near future".
Millwall Lionesses were founded in 1971 and in the 1980s became the first women's side in the country to be officially affiliated to a professional men's team. They won the Women's FA Cup in 1991 and 1997.