Councillors originally resolved to approve the 21,700 seat stadium in July, subject to completion of the Section 106 agreement, which sets out its contributions and enhancements to local infrastructure and amenities.
With negotiations now successfully concluded, the council's planning department has granted permission to proceed with the project.
Dave Hockey, chairman of the council's DC West Planning Committee, said: "This is a very exciting development for the stadium project and we are delighted to be able to grant formal permission to proceed.
"We had extremely positive negotiations over the scheme's Section 106 provisions and are confident that the measures agreed with Bristol Rovers and UWE will address concerns raised by local people, especially in relation to transport, parking and crowd control before, during and after events.
"The Liaison Group to be set up from the start of construction will enable local residents to be involved.
"The stadium will bring many economic, cultural and sporting benefits to the people of South Gloucestershire and surrounding areas and we have been extremely supportive of Rovers and UWE's plans throughout the development phase.
"We look forward to seeing construction work begin on the site."
The stadium is a joint venture between Bristol Rovers and the University of the West of England.
As well as becoming the new home for Bristol Rovers, the stadium is also set to host non-sporting events such as concerts.
It will also include a gym and convenience store as well as teaching facilities for UWE.
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