The Council's planning committee voted unanimously to approve the proposal for a 60,000-seat stadium, which would reportedly cost around £500 million.
“More than a year ago, a planning application for a new stadium at Stamford Bridge with an expanded seating capacity was submitted to our local council, Hammersmith & Fulham,” a statement on Chelsea’s website confirmed.
Chelsea submitted its planning application for the project in December 2015.
Earlier this week it emerged that Chelsea had held talks over the possibility of playing at Wembley Stadium during the renovation work, which is expected to start ahead of the 2018-19 campaign.
Chelsea currently have the seventh biggest ground in the Premier League and the third biggest in London, behind Arsenal and West Ham.