Plans for a new pit and paddock complex at Silverstone have been approved by Aylesbury Vale District Council.
The British Racing Drivers' Club, who own Silverstone, say the decision is the first stage of its re-development.
Under current proposals, the facility would be moved from its current location between Woodcote and Copse to a new location between Club and Abbey.
But the BRDC still need to get approval from South Northamptonshire Council about their housing plans at the track.
This would bring in the revenue to pay for the full Silverstone makeover but the Council want more information from the BRDC.
"This is a turning point for Silverstone and a bold commitment towards the BRDC's support for motorsport in the UK and for retaining the British Grand Prix"
The announcement comes a week after Formula One boss Bernie Ecclestone again stated that he does not believe the circuit's owners can meet the conditions for keeping the race in the county.
Nevertheless the BRDC are very happy with the pit and paddock approval.
Silverstone Circuits managing director Richard Phillips said: "We are absolutely delighted that AVDC's planning committee have unanimously supported and voted in favour of this proposed milestone development.
"This is a turning point for Silverstone and a bold commitment towards the BRDC's support for motorsport in the UK and for retaining the British Grand Prix.
"The current programme provides for work to start on site later this year.
Councillor Michael Edmonds, deputy leader of AVDC and Cabinet Member for Economic Development, said: "This is an exciting project that will help Silverstone retain the British Grand Prix and strengthen its international role as a world-class motorsport facility.
"We are very proud to have Silverstone in our district and want to do all we can to promote both the circuit and the wider attractions of Aylesbury Vale as a great place to visit and do business in.
"Our aim is to help ensure Aylesbury Vale remains the home of Formula One in Great Britain."
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