The 13,500-seat Leeds Arena in the UK has received outline planning consent from Leeds City Council.
According to the BBC, the council will look into detailed design plans for the £80m ($120.2m) building, which is expected to open in 2012.
The contractor for the development will be named soon and the construction is expected to begin later this year.
The project was briefly put on hold last year when Yorkshire Forward refused to invest £18m ($27m) in the scheme. The government then accepted a revised business plan from the council.