Liverpool City Council’s cabinet has formally ratified the deal set out last week to support construction of a £300m stadium for Everton Football Club.
The agreement will see the council form a special purpose vehicle (SPV) company to help bring forward the project within Peel Land and Property’s £5bn Liverpool Waters scheme.
Everton FC will fully fund construction of the stadium but lease the stadium from the SPV.
The council will now finalise the agreements over the next three months, while the Premier League club will prepare a planning application.
Liverpool mayor Joe Anderson said: “This deal is a great step forward for Everton and it’s a great deal for the city of Liverpool.
“This new stadium has the potential to kick-start the regeneration of the area and will provide a massive boost to the city’s economy.
“The ball is now in Everton’s court to sort the finance package and design a stadium that will make the world sit up and take notice.”
The club had previously considered options for a new stadium at Stanley Park and, in 2001, drew up plans for a 55,000-seat purpose-built arena on the site of the King’s Dock in the city.
Everton had also considered redeveloping its existing Goodison Park stadium (pictured).