The cathedral's board of directors endorsed selling its campus to Chapman University.
It's part of a bankruptcy reorganization plan. Under the plan, the church would still be allowed to use several buildings on the Garden Grove campus, including the sanctuary.
The church would also have the option to repurchase the buildings from Chapman.
The deal will take effect if the church can't raise the funds to keep the campus by mid-November.
A federal bankruptcy judge still must rule on the reorganization plan. A hearing on the matter is scheduled for Nov. 14.
Chapman University, based in the nearby city of Orange, has offered to pay $50 million for the property, possibly for use as a medical school or other health sciences offerings, said a university spokeswoman.
The university said in a statement Wednesday that the plan, if approved, would provide Chapman with much-needed space to expand.