Salford City Reds rugby league team is set for a move to a new stadium after plans for the development of a new 15,000-seat development near Barton-upon-Irwell, Greater Manchester were approved.

Outline planning permission has been granted for the £26m community sports complex, which will be delivered through a joint venture company formed by Salford City Council (SCC) and developer Peel Holdings. The 70-acre (28.3-hectare) 'super-site' will include the new 15,000-seat stadium for Salford City Reds, along with retail use. The venue will also help meet the club's bid for a Super League licence between 2012-15.

Detailed designs are expected to be submitted at the end of May for the scheme, which is scheduled for completion of December 2011 to ensure the club meets the deadline for Super League licence bids. The joint venture company will be responsible for managing the stadium, with Salford City Reds given a licence to use it. The Northwest Regional Development Agency would provide grant funding for preparatory work.

SCC is expected to provide a loan to the joint venture company to pay for construction work and new infrastructure, with the amount repaid through the sale of developed land to retail tenants and income from stadium use. Salford City Reds chief executive officer David Tarry said: "This decision is a major boost not just for the club, but also for the City of Salford and Super League, who are both totally committed to a desire for a strong, competitive franchise in our region.

"This announcement removes any lingering doubts surrounding the project, and confirms that Salford City Reds will be competing in a brand new stadium by the end of next year - a timeframe which will fit in perfectly with our bid for a Super League licence for 2012-2015." SCC leader John Merry added: "The partnership approach we're adopting also means the city will be part-owner of a major sporting and community asset. Sport is a big business these days and making suitable facilities available for a successful club will bring economic benefits to the city."