Government minister Lord Bassam has criticised Green councillors who want the Albion's temporary home at Withdean made permanent.
They want plans to build a 25,000-seat stadium for the club at Falmer to be scrapped.
But Home Office minister Lord Bassam, a former Brighton and Hove Council leader, said: "Their plans could consign the club to playing Second or Third Division football for ever.
"The Falmer proposals will help Brighton and Hove sustain a successful club. They will also help create as many as 1,000 new and much-needed jobs."
Lord Bassam said the council had negotiated Withdean as a temporary home and it would be a breach of trust to go back on that agreement.
He added: "Withdean is not big enough to match the aspirations we all have for the team. The Albion has enormous potential."
Lord Bassam said building at Falmer would also leave a legacy at Withdean of improved facilities for athletics and other sports.
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