Liverpool managing director Andy Hughes has hailed the "huge milestone" of having planning permission granted for the redevelopment of the Anfield Road Stand.
City council planners voted 6-2 in favour of the development, which will add about 7,000 seats and take ground capacity over 61,000, despite concerns expressed by residents and environmental groups about the impact on nearby Stanley Park.
Work will involve rerouting the existing Anfield Road around the new development, skirting the edge of the park, and then building behind the current stand with a view to joining up the old and new structures in the close season - thereby lessening the impact on Anfield's overall capacity.
As part of the planning application the club has also been given permission to hold Gaelic games at the famous ground.
Liverpool can also host up to six concerts and American football games for a period of five years.
The GAA have said previously that they have no plans to host matches at Anfield, which has a 101-metre long pitch, considerably shorter than the 130 metres minimum required for Gaelic football or hurling.
However the Super 11s hurling format has been played at Fenway Park, the home of the Boston Red Sox, who share an owner - FSG - with Liverpool.
The project is expected to be completed in the summer of 2023 and Hughes said: "This is a huge milestone in our journey towards bringing more supporters into Anfield.
"We have been clear from the beginning that this expansion would be based on our ability to successfully navigate the complex planning landscape; our ability to gain co-operation of local residents and the community; and our ability to ensure the project is financially viable.
"In what has been a very unpredictable year, we are seeking certainty in order to progress with this project and there are still some steps we need to take to get there."