Proposals by developer Oakgate to build a new community stadium, John Lewis and Marks & Spencer at Monks Cross won planning permission on Thursday after a marathon debate lasting more than eight hours.
Supporters of the development spoke of their delight afterwards, but opponents said an appeal has not been ruled out.
Richard France, spokesman for Oakgate, said the John Lewis store should open in autumn next year, the Marks & Spencer store the following spring, and the stadium in season 2014/15.
He said: “It is a vote in favour of jobs, growth and a legacy for professional, amateur and community sport.”
James Alexander, City of York Council leader, said after the meeting: “York has shown itself to be open for business and today, we have secured a future for professional sport in this city.”
He said an announcement was likely soon on more investment for the city-centre, particularly around the market.
Tim Atkins, the council’s stadium project manager, said: “It’s been a long time coming, but I am very happy. It is the right decision.”
He said the council must now wait to see whether Communities Secretary Eric Pickles would ‘call in’ the application for review.
Sophie Hicks, York City FC’s community and communications director, said: “It is an historic day in the club’s history.”
She praised the Labour and Liberal Democrat councillors, all of whom voted yes, but criticised York Conservative leader Ian Gillies, who she said had led his party’s three planning committee members to vote no.
She said club manager Gary Mills was delighted with the decision, and now wanted to complete an excellent week for City by winning promotion back to the Football League at Wembley on Sunday, following the FA Trophy success at the same venue last Saturday.
Club chairman Jason McGill added: “We said when we came in that we wanted to secure a new stadium and to win promotion and now, what a wonderful eight days in the history of the club this could be.”
John Guildford, of York City Knights Rugby League Club, who will share the stadium with the football club, said: “It’s a great result and critical for the club. There is no plan b.”
Around 40 campaigners, sports representatives, politicians, developers and businessmen and women spoke for or against the plans.
Critics said they went against the council's own stated policies and would harm the city centre, but proponents said the positives outweighed the negatives.