Developers Oakgate (Monks Cross) said the scheme would create up to 300 construction jobs and work is scheduled for completion in 2014.
York City’s existing Huntington Stadium will be demolished under the plans and replaced with a new all-seater ground which will also be home to York Knights rugby league club.
M&S has agreed to take a new 120,000 sq ft store in the adjacent retail park with John Lewis also believed to be interested.