Plans to enlarge the Madejski Stadium, home to Premiership football club Reading and London Irish RFC, have won the backing of council planners.
An artist's impression of how the new Madejski Stadium could look
Football club bosses are to increase the number of seats at the Berkshire town's stadium by 12,400, bringing the total number to about 38,000.
Proposals to expand the stands were backed by Reading Borough Council's planning committee on Wednesday night.
Club chief executive Nigel Howe said he was "extremely pleased".
"It's very exciting for the football club, our fans and the region as a whole," he added.
"The expansion will allow us to take the club forward and further improve the facilities for our supporters as we aim to become an established force in the top flight."
The scheme has caused some concern about the impact it could have on traffic congestion.
A decision about when the work will begin has yet to be taken.