MANCHESTER, England, Jan 28 (Reuters) - Manchester United's ( MANU ) plan to build a 100,000-seat stadium has taken a big step toward becoming reality, with the vision receiving the green light from the Trafford Council executive.

The approval on Monday evening came after the British government backed the regeneration project.

The decision to either renovate Old Trafford or build an adjacent facility is not expected until season's end, although The Times said that co-owner Jim Ratcliffe favours a new two billion pound ($2.49 billion) stadium on an adjacent site.

The Trafford Council's next step is to appoint a "top-class consultant team" who will work with the Premier League club and other key partners to deliver a "transformational and sustainable international destination for the benefit of residents, businesses and visitors," they said in a statement.

The regeneration proposals include creating around 48,000 new jobs and up to 15,000 new homes in the borough while adding 4.2 billion pounds to the local economy.

"The Trafford Wharfside masterplan ... takes in the world-famous sporting institution that is Manchester United ( MANU ) as well as other major sites including the Imperial War Museum and the Manchester Ship Canal," the statement said.

The storied stadium, with a seating capacity of 74,310 that makes it the second largest football facility in Britain behind Wembley, opened in 1910.

It underwent expansions in the 1990s and 2000s, including the addition of extra tiers to the North, West and East Stands. However, the stadium known affectionately as the "Theatre of Dreams" has become the stuff of nightmares, with a leaky roof and reports last month of a mouse infestation. ($1 = 0.8044 pounds)