AFC Wimbledon will return to its spiritual home following approval by Merton council of plans for a 20,000-seat stadium.
The football club, which was exiled in 1991 by the introduction of legislation making all-seat stadiums mandatory, will first build an 11,000-seat stadium and then expand it as the club grows.
Galliard Homes submitted a joint planning application with the club for the £20m mixed-use sports hub, which will include 602 homes, shops and a leisure club.
The stadium will be built in Plough Lane, on the site of London’s last greyhound racing track.
Construction is expected to start towards the end of the year and the club hopes its team will be back playing on home turf in time for the 2018-19 season.
AFC Wimbledon now plays at Kingsmeadow in Kingston upon Thames.
After leaving Wimbledon in 1991, the club, then known as Wimbledon FC, split, with some members moving to Milton Keynes to form MK Dons.
AFC Wimbledon chief executive Erik Samuelson said: “This is an important step in a journey we started some years ago.
“We have a long way to go and many major hurdles to clear but we want to build a stadium that is embedded in the community and operate it in an inclusive way.”
