A decision on the redevelopment of Brandywell Stadium is expected within the fortnight, according to Derry City Football Club.
The club's chairman Phil O'Doherty said plans for a new 2.500 seater stand on the Lone Moor Road side of the stadium would "definitely go ahead".
The green light from Derry City Council would also see the construction of new changing rooms, offices and corporate facilities.
A spokesperson for the council said: "As previously stated, council received confirmation from Sport NI that its application for financial assistance, under Phase IV of the Stadia Safety Programme, has been approved in principle, and prioritized for funding.
"However, this is subject to Sport NI securing the required capital funds within the Comprehensive Spending Review for 2011-2014.
"The Council is awaiting the outcome of this review so that it can look at a number of options in the overall context of the regeneration of the city as a whole."
Mr O'Doherty said he was informed that the project would move forward and that the overall programme from start to finish would take two years.
(GK/BMcC)
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