Chelsea have played at Stamford Bridge since 1905
Chelsea: Stamford Bridge revamp gets initial council approval
Chelsea's plan to redevelop Stamford Bridge into a new 60,000-capacity stadium is "generally acceptable", says the local authority.
Hammersmith and Fulham Council says it would support any plans, subject to certain conditions being met.
The development would also feature two hotels, a Chelsea Village comprising of 37 luxury flats and a 276-space car park.
A full planning application is now expected to be submitted.
Chelsea have played at Stamford Bridge since 1905, and the ground was last redeveloped in the 1990s.
However, its current capacity of around 42,000 is significantly smaller than the stadia of Premier League rivals Manchester United, Arsenal and Manchester City, whose grounds hold 76,000, 60,000 and 55,000 respectively.
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Blues owner Roman Abramovich had initially considered seeking a permanent new home, with the club describing the option of expanding Stamford Bridge as "not feasible or viable" in 2012.
But the club decided to redevelop their current ground because of a lack of suitable sites available in London – having had a bid to build an "iconic" new stadium in Battersea Power Station rejected.
The club is reportedly close to sealing an agreement with Wembley to host their home matches during the redevelopment of Stamford Bridge, having previously explored the possibility of using Twickenham, the England rugby union stadium.