The decision was taken today in a Cabinet meeting presided over by the chief minister, the spokesperson said.
He said the Cabinet also gave its nod to estimated expenditure for the purpose which is pegged at around Rs 260 crore by a special committee.
The stadium will have a seating capacity of 40,000 spectators, he said.
Other provisions to meet the international standards like number of pitches, field of play, stands for players, VVIPs and media gallery required would be made in the stadium, the spokesman added.