The Etihad Stadium side has been given permission to expand from a 48,000 capacity ground to over 62,000 - second only to rival Manchester United in the Premier League.
The proposed expansion will make the Etihad the second largest ground in England's top flight, with only Old Trafford - home of City's fierce rival Manchester United - holding more.
City intends to initially redevelop the South Stand, by adding an initial 6,250 seats, while permission has been granted to do the same to the North Stand and to add a further 2,000 at pitch-side.
The plans will bump the Etihad's capacity from 48,000 to approximately 62,000.
A statement on the club's official website read: "Manchester City Football Club has today [Friday] received formal notification of the granting of planning permission to expand the Etihad Stadium.
"It is the club's current intention to first proceed with the development of the South Stand.