Liverpool football club have been given the green light to build a new 60,000 capacity stadium.

The new stadium will be built in Stanley Park, just 300 metres from Liverpool’s current home at Anfield.

The announcement came after inspections from Liverpool city council, and will enable Liverpool to complete with Arsenal – currently building a new 60,000 capacity stadium at Ashburton Grove, and Manchester United whose Old Trafford capacity has risen to 67,000.

The new complex will enable the current location to be turned into a public area containing flats, offices and leisure facilities, and it is hoped that the stadium will mark the beginning of an entire regeneration project in the north of the city.

Liverpool have been working on the plan to relocate for a number of years and have encountered strong local opposition to their attempts to build on Stanley park.

The matter will now be passed onto deputy prime minister John Prescott, who will determine whether a public enquiry needs to be held.