The £12m redevelopment will see the capacity of Sixfields increase to around 10,000 alongside a hotel, corporate boxes and a conference centre.
Cllr David Mackintosh, leader of Northampton Borough Council, said: “We made a long term commitment in our election manifesto to help Northampton Town Football Club redevelop Sixfields Stadium.
“We have agreed a redevelopment partnership with Northampton Town Football Club that involves a housing scheme and small scale, local retail development on land, upon which the football club have a 150 year lease, as well as adjacent land near the stadium.
“We recognise it will take a number of years for the profit from this to come to fruition, so to allow matters to proceed in the meantime Northampton Borough Council will loan the club up to £12 million to allow the redevelopment to go ahead as soon as possible.
“We know it has been a really frustrating time for the club and its supporters, so we are very pleased to be able to make this announcement.
“There will be some huge changes to the stadium.
“There will be a new East Stand, and the approach to the stadium will look very different with a new look West Stand, a conference centre and a hotel and it will be an impressive approach to the town for those arriving from the south west and a huge asset for our developing Enterprise Zone.”
A planning application for the scheme will be submitted this autumn with work set to be complete ready for the start of the 2014/15 season.”
Cobblers Chairman David Cardoza said: “This will take the football club in to the 21st century.
“In this day and age you need the opportunity to generate income 365 days a year and this will give us that.
“We plan to build a hotel, a conference centre, corporate boxes, to offer better facilities to supporters, to have office space to let and much more.
“The plan is to make the club self sufficient in the long term so it is not relying on any one individual.
“The aim is of course also to generate more money from these additional income streams so we can increase the money made available to Aidy Boothroyd and the football side of the club.”
