Councillor Jonathan Pryor, Leeds City Council’s deputy leader, said he was “so pleased” at the decision, adding it would “open the door” to further redevelopment in the surrounding area.
“It’s not just for the football fans, numerous as they may be; the amount of employment this will create is fantastic,” he said.
“I think the stadium itself is almost an anchor for why people are going to come there and why people are going to love this area.”
After the initial application was submitted in July, issues were raised about transport, logistics and the impact on the nearby Heath estate.
The club worked with the council to rectify these, it said, with 98% of respondents to a public consultation in favour of the proposals.
Chief business officer Morrie Eisenberg said the support showed “how deeply this club and stadium matter to the city”.
“Without our fans, this moment would not be possible,” he added.
Members of the council’s planning panel voted overwhelmingly in favour of the proposals, with 11 for the plan and one against.
The stadium will remain open and operational throughout the expansion, the club said.