Councillors voted 11-4 in favour of the scheme - which includes John Lewis and Marks & Spencer superstores being built on the outskirts of the city.
There had been plenty of opposition from local traders but the Labour and Liberal Democrats all voted in favour of the new
development at Monks Cross while the Conservatives opposed.
More than two hundred people were in attendance at a hotel in the city.
The Minstermen will share the facility with rugby league club York City Knights and their new venue should finally be in place in three years.
Club chairman Jason McGill told The Press: “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.”
York are looking to complete a great week for the club by reclaiming their Football League status in the play-off final against Luton Town on Sunday afternoon.
Last weekend they won their first-ever national cup competition when defeating Newport County in the FA Trophy final at Wembley.