Italy's heritage authority raised no objections to tearing down Milan's San Siro Stadium, according to Reuters.
Serie A clubs AC Milan and Inter Milan last year filed a request to jointly build a new 60,000-seater stadium in the San Siro area.
The new stadium is a key part of the $1.3 billion (Dh4.7bn) real estate plan for the district, which includes demolishing almost all of the historic 1920s-era San Siro arena, home ground of both the city's top-flight clubs.
Approval from heritage authorities is an important step towards implementing the plan.
According to the report, the Milan municipality said the arena does not have any architectural significance that would prevent its demolition. Only a small remnant of the oldest part of the stadium, built in 1926, is left.
City representatives had questioned plans to tear down San Siro and the clubs modified initial plans which would have seen the entire stadium demolished.
Plans under discussion include tearing down most of the old arena but keeping part of it as a kind of city landmark around which the clubs would build new sport facilities available to the public.
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