Southend Council's development control committee agreed Sainsbury's proposal on July 16.
However, the application had to be referred to the Government Office for the East of England because it was a departure from the development plan.
Now Southend United chairman Ron Martin has been told the application will not be called in by the Secretary of State. This would have meant a costly public inquiry and could have set the project back months.
Mr Martin said: "This news completes the club's planning approvals we have been seeking for the new stadium project. We didn't expect it to be called in as the inspector at the inquiry recognised how important Sainsbury's was to the financial equation. It's very pleasing it came out as we anticipated and in a short time, as it was only referred three weeks ago. I am delighted with the news, as is Sainsbury's."
He said the next stage is to continue letting the retail units of the Fossetts Farm development to generate funding, which of course will not be easy in the current climate.
Mr Martin said: "We are in the throws of letting the building and have more than 50 per cent let. Everything is going very well out of town. We needed to get this approved. If it hadn't happened, it could have potentially delayed the stadium project another year. We are still working on having football played at the new stadium at Fossetts Farm for the 2010/11 season. With the current state of the financial market, we may still be doing construction work on the main stand. However, in terms of playing football, it will be there." (Let's hope so or the dreaded ground share will come into view again.)
The club is going out to tender for the groundworks shortly.
Mr Martin recently told the Southend Evening Echo he was looking for an estimated £80million funding to allow the scheme to go ahead and had travelled to America in a bid to find a backer.
Sainsbury's plan to build a retail food store with petrol station, 272 flats and houses including affordable housing, together with parking and cycle spaces.
The company will now make a detailed planning application.