Watford Borough Council has approved plans for the development of the £1bn Watford Health Campus, which will include a redeveloped stadium for Watford Football Club.

The council's development control committee resolved to grant planning permission subject to a Section 106 agreement.

The campus to be built on a 26hectare site around Watford General Hospital will also include a new 510-bed hospital, a specialist women's and children's unit, a mental health unit, a hotel and conferencing facility, 350 homes and 150 affordable homes, new space for businesses and improved access to the site.

The application was originally submitted to Watford Borough Council's planning committee in July last year, but the project faced delays after the Highways Agency objected because of fears over the impact extra traffic might have on the M1 motorway.

The planning application will now go to the Government Office for the East of England for a decision on whether to refer the application to the Secretary of State.

The scheme is being promoted by nine stakeholders: the East of England Development Agency, East of England Strategic Health Authority, Hertfordshire County Council, Hertfordshire Partnership NHS Trust, Hertfordshire Prosperity, Watford Borough Council, Watford Football Club, West Hertfordshire Hospitals NHS Trust, and West Hertfordshire Primary Care Trust.