The Toffees are aiming to move into their new waterfront stadium in time for the 2024-25 season.
The approval brings Everton closer to departing Goodison Park and moving into a new 52,888-capacity waterfront stadium.
The plan will now be sent for approval by the Secretary of State for Housing Communities and Local Government, with the club hoping to begin construction by the spring or summer.
Why do Everton want a new stadium?
The Toffees have been at Goodison Park since 1892 and a report sent to the city council said the club want a new stadium to “keep pace with Premier League competitors and prosper”.
Goodison Park holds 39,414 fans, so a new stadium would allow the club to earn more money from matches, with the new stadium potentially able to expand to a capacity of 62,000.
Everton are looking to consistently compete for the top-six spots in the Premier League and the European places that come with them, and the club believe a new stadium will be key in achieving that goal.
What did Everton say?
“Whilst today is just one more step in our long journey, it is a very important one,” Everton chairman Bill Kenwright told Everton’s official website.
“We are also enormously grateful to the many organisations and tens of thousands of individuals across the city region who have given us their feedback, ideas and support along the way. It’s been a good week for Everton and Evertonians.”