Cork City Council have voted in favour of the proposal to make 6.82 acres of land next to Páirc Uí Chaoimh available for the re-development of the stadium.
The proposal, which will also see a centre of excellence built on the site, was backed by a vote of 17-11 by councillors.
The stadium, which was opened in 1976, is expected to have an increased capacity of 60,000 when completed.
Cork County Board Chairman Jerry O’Sullivan said: ‘We’re absolutely delighted and I think this is a landmark day for GAA in the county.
'I’m delighted for sports people in the entire county and for the GAA people. But this is only the very first step and the real hard work starts now. We’ll be negotiating with the City Council now to do a deal for the cost of the land.’
‘Then the planning phase will take place and certainly I’d hope to have Phase 1 completed within a two-year term.’