Plans for the multi-million pound redevelopment of the Rodney Parade rugby stadium in Newport, South Wales, have been given the go-ahead by Newport City Council (NCC).

A new 15,000-capacity stadium is at the heart of the three-stage scheme, which will be home to both Newport Gwent Dragons rugby team and Newport Rugby Football Club (NRFC). S & P Architects are behind the designs for the development, which also incorporates new student accommodation, private residential apartments and a range of community and commercial facilities, including a gym, a sports injuries clinic and a large indoor training barn.

A 500-seat restaurant and conference facility is also included in the project, which is set to cost up to £80m. The initial stage of the scheme will see the student accommodation built first, which is expected to be completed in time for the 2010-11 academic year. Gethin Jenkins, chief executive of Newport Gwent Dragons, said: "The decision is a significant step in achieving a dream, which is not just to benefit the Dragons and Newport RFC, but the community as a whole.

"It is hoped that construction of the first phase of this regeneration could be starting by the end of the year. The club is keen to proceed quickly with the implementation, but recognises that the current economic conditions mean that getting funding in place will be a longer process than might have been the case previously." NCC leader, Matthew Evans, added: "A new development on the existing Rodney Parade site is an exciting prospect for the centre of Newport, and one that is almost unique among modern stadium developments, which tend to be soulless, out-of-town locations."