Surrey County Cricket Club has been given the green light to build a 170-bedroom hotel at the Brit Oval in Kennington, south London.
The club has proposed building a four-star hotel in partnership with Arora International, as part of the development of a 1,600 seat stand.
It hopes to complete the development in time for the 2009 Ashes contest against Australia.
The proposal was initially rejected by Lambeth Council following objections from the Health & Safety Executive (HSE).
The HSE warned of the risk of a major incident because of the development's proximity to the Kennington gas holder.
But, following an appeal from Surrey, Lambeth officials agreed to the scheme late on Tuesday night.
However, the HSE is now expected to demand that the development be called in for review by central government, creating a further delay.
By Daniel Thomas
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