The Government and the Mayor of London have approved West Ham's bid to take over the Olympic Stadium after the 2012 Games.
The Olympic Park Legacy Company (OPLC) had unanimously recommended the joint bid by West Ham and Newham Council over proposals by Premier League rivals Tottenham.
Local Government minister Bob Neill confirmed he and Sports Minister Hugh Robertson had both given the recommendation the 'thumbs up'.Mr Neill said: "This completes the first stage of this process and means that the Olympic Park Legacy Company are now able to enter into negotiations to agree a lease
for the Olympic Stadium site.
"We are delighted with the progress that has been made and very pleased we have reached this very significant milestone in determining the long-term legacy for the Olympic Park."
London Mayor Boris Johnson said the decision would prevent the £537m venue in Stratford, east London from becoming "a dust bowl".
"I am confident that West Ham will provide a secure future for the stadium which also sees its iconic design for the London Games retained for future generations to admire," he said.
"Just two years ago it faced the prospect of becoming a dust bowl staging occasional athletics events but now we can look forward to a fantastic multi-use venue at the heart of the community."
Together with Newham Council, West Ham intend to convert the 80,000-seater stadium into a 60,000-capacity facility with an athletics track.
The club plans to move from its current home at Upton Park in 2014/15 after spending around £95m remodelling the stadium.
Its bid was recommended by the OPLC after an increasingly bitter contest with north Londoners Spurs.
The OPLC will now negotiate a "mutually acceptable lease" with the club and Newham - but warns "other options will be considered" if they are unable to reach a deal.
Tottenham's plans, part of a joint bid with the AEG sport and entertainment group, had been to create a football-only stadium with Crystal Palace being redeveloped for athletics.
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