Finn Harps hope to have their state-of-the-art 6,800 seater stadium built in Ballybofey in just over two years time.
A number of jobs are also expected to be announced locally during the building of the stadium.
It says the announcement finally puts to bed concerns and doubts that supporters have had regarding the project.
“The builder will be on site shortly, and fans can expect to see significant progress over the summer months. This is great news for soccer in Donegal. We hope to have the stadium completed in 2 to 3 years.
“Progress had been delayed due to legal issues over the last year, however these matters were brought to a successful conclusion in recent weeks, paving the way for the release of monies,” it said.
The Club is keen to point out that this announcement is testament to what can be achieved by people and organisations working together.
Different hurdles presented themselves at various stages, but all parties involved have worked towards their resolution.
A spokesman said “We are particularly thankful to the local Trust, local landowners, the various public representatives, the County Council and Department officials.
“The FAI has been particularly supportive, and their advice over the last few years has been invaluable. The Club would also acknowledge the key role of the relevant legal representatives.”
The stadium will incorporate 6,800 covered seats, along with an administration building, with modern dressing rooms and all facilities required by UEFA Licensing.
An additional junior soccer pitch is also being provided. The project will be located close to the existing Finn Valley Athletic Complex.
Finn Harps Chairman Joey O’Leary was delighted with the new and thanked everyone who has worked on this project over the year.
“The Club are indebted to all the members of the Ground Development Committee who have been involved at various stages of the development, as well as our legal representative, the local Trust, Donegal County Council, our local councillors and TD’s, the FAI, and other local organisations who have assisted and facilitated the Club.”