The plans include a new hotel and shops around the club's home.

It is hoped the development, reportedly set to cost £350million, will breath new life into the run-down Govan area of the city.

Glasgow City Council today agreed to transfer the land to Rangers, noting the project would make a "very significant contribution" to its own redevelopment plans.

Rangers chairman Sir David Murray will now begin a search for partners to back the development.

A club spokesman said today: "This is a significant step forward in an exciting project that can have a major impact in regenerating the Govan area and delivering real benefit to the whole of Glasgow, particularly in view of the Commonwealth Games coming to the city."

The proposed plan includes transforming flats in the Hinshelwood area near the stadium into a complex which will include a hotel and shops.

Another proposal is the redevelopment of a local community football pitch.

Murray apologised yesterday at the club's annual AGM for the hold-up in getting the green light for the scheme, blaming delays at the council.

He conceded the current economic climate could create problems but insisted it would reap financial rewards for Rangers.

Murray urged: "Let's be positive and hope both that the economy is in better shape and we find suitable partners to work with us."

A further project to develop the stadium itself had been put on hold due to the financial downturn, he added.

Approving the scheme today, the council's executive committee welcomed it as a boost to regeneration in the area but called on the club to come up with "detailed timescales for the masterplan".

A spokesman said: "The Ibrox redevelopment proposals are part of the overall regeneration plan for the Govan area.

"At times when markets are experiencing difficulties, the council needs to be more adventurous about how it uses its own land to encourage economic development and generate investment."