Birmingham's Alexander Stadium is set to undergo a £12.25m redevelopment after the local authority approved the business plan for the scheme.

It is hoped the 'self-financing' redevelopment will establish the stadium as a potential base for UK Athletics (UKA), with plans featuring a 5,000-seat stand to increase capacity to 12,800. The S&P Architects-designed plans also allow for the installation of temporary seating if required, while new office space will be able to accommodate 250 people and a new gym will be available to local residents.

By increasing the seating capacity, it is hoped the stadium will be able to host Diamond League meetings, while future plans could see the capacity rise further to 25,000. Work is scheduled to commence in October, with Birmingham City Council (BCC) expecting to fund the scheme through the rental of office space and gym income.

The council also revealed that, aside from UKA, other national governing bodies have expressed an interest in the new-look facility, which is due to be completed in June 2011. However, a UKA spokesperson told the BBC no decisions had yet been made. BCC leader Mike Whitby said: "We play host to gold medal hopefuls from the USA and Jamaica ahead of the 2012 Olympic Games and, to build on that success, we need the facilities required for the world's best athletes to compete here on a regular basis.

"That's exactly what this project will achieve and we're once again showing Birmingham has the commitment needed to be a significant player in world sport." Martin Mullaney, the council's cabinet member for leisure, sport and culture, added: "Public spending is understandably under the spotlight at the moment but income from the new office space and fitness facilities means this project will be self-financing."