Colchester have been granted detailed planning permission to build a new stadium which will replace Layer Road from the start of the 2008/09 season.
The Championship club joined forces with the Borough Council and the Community Sports Trust to approve the plans at a meeting on 28 June.
The decision means building work can begin on the 10,000-seater stadium.
A £10m loan from Colchester Borough Council will fund the £14m ground at Cuckoo Farm in the north of the town.
The remainder of the money will come in the form of grants from the Football Foundation and local government and development agencies.
The U's have played at their current Layer Road ground since they were formed in 1937.