Portsmouth Football Club have been given the go-ahead to redevelop their stadium to a capacity of 35,000.
The development will be built to the west of the Ty Europe stand
At a public meeting in the Guildhall on Wednesday, Portsmouth City Council voted in favour of the proposal which will cost about £125m.
The development will include 500 houses, shops, restaurants and leisure facilities at Fratton Park with 14% of the homes being social housing.
Pompey hope the money made from the project will offset the stadium cost.
Portsmouth chairman Milan Mandaric said of the decision: "It means a lot to the club and to the city.
"I am very thankful to the city council and to the people who have participated on this project."