A £26m sports complex, which will be home to rugby league club Salford City Reds, has been approved by councillors.
Salford City Council's cabinet passed plans to form a joint venture company with Peel Holdings to build a 15,000-seat stadium.
It will be built in Barton on a 70-acre site and should be completed by 2011, the council said.
Council leader John Merry said the new stadium would bring "economic benefits to the city."
Salford City Developments had submitted plans to build a new stadium, to replace its current current ground The Willows, three years ago.
However, the company went into administration shortly afterwards so the plans were abandoned.
Outline planning permission for the land had already been granted for a stadium and retail use. Detailed plans for the development are expected to be submitted by the end of May.
Mr Merry said the development would be "another landmark of Salford's regeneration".
David Tarry, from Salford City Reds, said: "This decision is a major boost not just for the club, but also for the city of Salford and Super League who are both totally committed to a desire for a strong, competitive franchise in our region.
"This announcement removes any lingering doubts surrounding the project, and confirms that Salford City Reds will be competing in a brand new stadium by the end of next year - a timeframe which will fit in perfectly with our bid for a Super League licence for 2012-2015.
"This marks the end of a 12-year journey and the start of a bright new future for the Reds."