Glasgow City Council (GCC) has passed proposals in principle to sell Glasgow Rangers Football Club (Rangers) land that it owns adjacent to the club's Ibrox Stadium.

The decision means that Rangers can now move forward with its masterplan for the multi-million pound redevelopment of the Govan area, which includes plans for a new hotel, as well as the revamp of the stadium. A report from George Ryan, GCC's executive member for development and regeneration, was put to the council's executive committee, which said: "The project will make a very significant contribution to the regeneration of the Govan area."

A council spokesperson confirmed that the agreement to sell the land to Rangers was subject to the approval of a planning application for the club's development masterplan, as well as the timescale of the project. However, Rangers chair, Sir David Murray, said at the club's AGM on 9 October that any proposals to redevelop Ibrox Stadium would be put on hold as a result of current economic uncertainty.

"At the moment our plan, to be quite honest, doesn't stand up financially in this climate," said Murray. "With that said, we still have a plan to redevelop the stadium and we will do that in consultation with our supporters." In 2005, Rangers had been granted planning permission for a £200m entertainment complex that would have included a regional casino, but those plans were scrapped after the government failed to award a licence for the development.