Minnesota United Football Club (FC) in the US has formed a partnership with the city authorities in St Paul to develop a soccer stadium on vacant property owned by the Metropolitan Council.
Expected to cost around $120m, the stadium will be home for the Major League Soccer (MLS) in the US state.
Minnesota United FC team owner Bill McGuire said: "Located between two great downtowns, situated along multiple transit options and the interstate, and in the heart of a dynamic community, this site provides us the opportunity to work in partnership with the city of St Paul and the local community to establish top-tier professional soccer that will be readily accessible to everyone."
The new stadium on the Snelling-Midway site has been planned to feature nearly 20,000 seats and is expected to benefit the entire state.
Saint Paul mayor Chris Coleman said: "A soccer stadium will provide an important catalyst for the redevelopment of the entire area, creating jobs, spurring housing and new commercial opportunities, and building on our commitment to transit oriented development.
"With an agreed framework for the construction of this stadium, we are confident that working with the community, our local and state partners and with one another, we can complete the process necessary to bring MLS to Minnesota."
Minnesota United FC will be privately financing the stadium construction at the site, which was formerly a Metro Transit bus barn and was already tax-exempt.
MLS commissioner Don Garber said: "We believe the Midway location will be a tremendous home for Minnesota's new MLS club based on the site's central location, close proximity to a diverse millennial population, and easy access to multiple modes of public transportation."