Everton's planning application for a new 52,888-capacity stadium at Bramley-Moore Dock has been unanimously approved by Liverpool City Council, the Premier League club said on Tuesday.
The Merseyside club has played at Goodison Park since 1892, but with a capacity of only 40,000, the team has struggled to compete with the match-day income of its rivals.
Everton formally agreed on a 200-year land lease at the dock site in 2017 and announced plans to build a waterfront stadium that can help bridge the gap to the leading top-flight teams.
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"Whilst today is just one more step in our long journey, it's a very important one," Everton Chairman Bill Kenwright said in a statement.
"We are also enormously grateful to the many organisations and tens of thousands of individuals across the city region who have given us their feedback, ideas and support along the way. It's been a good week for Everton and Evertonians."
The club said that councillors had also approved the outline application for a community-led legacy project at Goodison Park.
Everton's plans will be referred to the secretary of state for housing communities and local government, who will have an initial 21 days to review the application to reach a decision.