Liverpool City Council's planning committee has granted planning permission for the expansion of Anfield stadium to 54,000 seats.
The redevelopment of the Main Stand will add an additional 8,500 seats, taking its capacity to nearly 21,000 and overall Anfield capacity to around 54,000.
The outline proposals for the Anfield Road Stand provide for an increase in its capacity of around 4,800 seats.
The scheme includes a two-storey podium and a cloister which would become the new home for the Hillsborough Memorial.
The Main Stand will open onto a wide public space which has been designed to link the stadium and park while creating an area which is relevant and usable to the local community, particularly on non-match days.
The project team includes architect KSS, planning consultant Turley, and landscape architect Planit IE.
Construction work on the proposed Main Stand is expected to begin early next year and be complete in time for the 2016/17 season. Matches will continue to be played at Anfield during the construction work.
The expansion is part of a wider regeneration plan for the Anfield area announced by Liverpool City Council in October 2012.
Mayor of Liverpool Joe Anderson said: "This is a very important milestone in our ambitions to transform the Anfield area, bringing new jobs, investment and housing.
"The overall regeneration will see £260m invested in Anfield. Liverpool Football Club's proposals for the stadium are a key part of this. The club is a major employer in the area and its stadium is a major draw for tourists and visitors."