The next phase of work on the new stadium for Finn Harps will start in spring of next year.
It will be known as 'The Donegal Stadium' in a €12m project with a capacity of 5,600.
Plans for the new stadium in Stranorlar have been ongoing for over a decade, with work stalling in 2014 because of the recession.
But today Finn Harps have announced that they hope the project will be completed within five years.
Work is set to recommence on the main stand, which had already started, and now the pitch, changing rooms and ancillary facilities will follow.
Further seating and terraces will be added on a phased basis after the pitch opens in 2021.
Land has been transferred from Donegal County Council and development money from a number of partners will be backed by local fundraising.
"It is always our intention to play in the Premier Division and we want facilities to match the club's ambition off and on the pitch," Harps chairman Peter McCloone told RTÉ News.
"On the pitch the club is going quite well at the moment but off the pitch we're lacking in facilities.
"The current Finn Park just isn't up to the standard so we want to send a signal about soccer in Donegal that we're going to work at the top table."
Finn Harps face Drogheda United in the second leg of the First Division promotion play-off on Friday night.