Toronto City Council voted in favour of expanding BMO Field on Thursday.
The motion to expand the stadium's capacity passed through by a count of 39-3, with Toronto mayor Rob Ford being among those in opposition.
Currently boasting a capacity of 21,566 for soccer games, the proposed expansion would give the venue the ability to host up to 40,000 for special events.
The motion carries a $10 million cost for the City of Toronto.
The federal and Ontario governments have expressed interest in matching the City's investment in order to provide a total public sector contribution of $30 million, with Maple Leaf Sports and Entertainment footing the remaining $90 million of the total estimated renovation cost.
MLSE has also agreed to modify the terms of the deal to provide additional revenue to the City of Toronto. The City Finance staff forecasted in a circulated report that "the proposed $10 million investment will be fully recovered from incremental revenues generated during the term of the extended agreement with MLSE."