The current 25,500 seater will see the partial demolition and rebuild of the western ends of the Putney and Hammersmith stands.
Craven Cottage is set to expand to 30,000 with the council’s planning applications committee agreeing Fulham FC’s proposal for the “ugly” Riverside Stand.
Subject to various conditions the Riverside Stand, nearest the Thames will be partially demolished with a new upper tier added hospitality space, a riverside façade and four residential units.
Home to Fulham Football Club since 1996, the current 25,500 seater will see the partial demolition and rebuild of the western ends of the Putney and Hammersmith stands including new seats.
Alistair Mackintosh, CEO of Fulham Football Club, said: “This is extremely exciting news and we are all delighted with this outcome.
“I am confident that an increased capacity and major improvements to the facilities can help us deliver the Chairman’s vision of long term growth and sustainability for this football club.”
On non-match days the riverside walk along the Thames will be opened up and the club has agreed to make a £600,000 contribution for the restoration of Bishops Park.
The deal includes an annual contribution of £40,000 per year for the next ten years towards maintenance with an extra £60,000 to install heritage gates at the Stevenage Road entrance.
Councillor Nicholas Botterill, H & F Council Leader, said: “Craven Cottage is the historic home of Fulham Football Club and this modest expansion, which will be carried out in a sensitive and sensible way, will allow the club to remain competitive in the top tier of English football while removing the existing, rather ugly, Riverside Stand.
“We are the only borough in Britain to be the home to three top-flight football clubs and we are keen to work with all of them to get the best deal for our residents.”
FFC have also agreed to make a series of payments to improve signage, CCTV and pedestrian and road safety measures in the area as well as additional street cleaning on match days.
The council’s consultation on FFC’s proposals saw 600 representations, with 453 in support of the development, 145 against and two with no comments.