The Dons plan to build an 11,000-seat stadium on the site of Wimbledon Greyhound Stadium were nodded through by Merton Council nearly a year ago.
But the club’s plans stalled in March when Boris Johnson, then Mayor of London, decided to review Merton council’s decision to grant approval to the scheme, following objections from neighbouring Wandsworth.
Since then new Mayor Sadiq Khan handed the powers to progress the application back to Merton Council but Wandsworth Council urged the communities secretary to intervene and halt the development.
Chief executive Erik Samuelson said: “At long last, we can start planning with confidence to give AFC Wimbledon a secure future at the heart of the community the club represents, as well as building many much-needed homes and providing a major boost to the economy of the area.
“After so many years in exile, the Dons are coming home!”
The club has partnered up with Galliard Homes to deliver 600 homes at the Plough Lane site, literally yards from the former football ground. This will help to fund the £16m cost of building the stadium.
The original Wimbledon FC was forced to leave Plough Lane in 1991 following the publication of the Taylor Report.
And after sharing Selhurst Park with Crystal Palace until 2002, moved to Milton Keynes.
AFC Wimbledon, formed in 2002 in response to the relocation, have played all their home games at Kingsmeadow, also home to non-league Kingstonian.
Leader of Merton Council, Councillor Stephen Alambritis, said: “This is fantastic news for the club and for Merton. We have always supported the return of AFC Wimbledon to home turf and now they and their legions of dedicated fans can look forward to the reality. We will also benefit from new homes and business opportunities for the area which is very exciting too.”