South Dublin County Council have agreed to provide funding to build a new South Stand which will be ready in time for the start of the 2018 League of Ireland season.
Construction work will begin next year and the new stand will be built at the car park end of the stadium increasing the capacity from 6,000 to 8,000.
The cost, which is estimated to be around €1.9 million, will be funded by South Dublin County Council, and the development will bring the stadium up to Uefa category four standard.
This classification is necessary for the ground to host Europa League and Champions League group stage games.
The capacity of the venue was increased to 10,900 with the construction of temporary stands for the visit of Real Madrid in 2009 and Shamrock Rovers’ home Europa League fixtures during the 2011/12 season.
The Hoops are the anchor tenant at the stadium but it is also home to the Ireland ladies team and minority sports like the Rugby League European Championship, Rugby Union and the Irish American Football League.