Granted permission to revamp the Estadio Santiago Bernabéu -- first completed in 1942 and last updated in 1982 -- Real expects the upgrade to bring in an extra $170 million per season.
According to the La Liga team's president Florentino Pérez, the new ground will "be the best stadium in the world" and will recognize Real Madrid as the "best club of the 21st Century."
"It'll offer a new stadium, heritage and be a new source of pride for our members and fans," said Perez.
Inspiration
Costing an estimated $600 million, the redevelopment will include a retractable roof, an Esports arena and a 360-degree scoreboard.
Work is set to start in April 2019, once the bidding process for construction rights is completed, and should take 36 months.
A titanium facade will wrap around the entire exterior, with the capacity to light up and project huge images of moments from Real's glittering history. The club is the most successful in Europe having won the European Cup 13 times.
Volkwin Marg, head of the German architectural firm Gerkan, Marg and Partners that designed the new arena, had previously told CNN: "We were inspired by medieval cathedrals, with all their sculptures and paintings around the building telling their stories."
The existing shopping center, the club shop and the club museum will all be expanded to boost annual revenue.
In addition, a 215,250 square foot pedestrian zone will be created along the stadium's west side to make the venue more accessible.
Watch the video at the top of the page for a closer look at the new stadium.
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