Work on the next £15m phase was due to start in May but was delayed after local shopping centre owner Derwent Holdings launched legal objections to the scheme.

But the court rejected Derwent’s case today meaning contractors can now be appointed to get on with the work designed to transform Old Trafford into an Ashes venue by 2013.

The club’s plans include £32m of investment in new pitches, stands, state-of-the-art player and media facilities and an extension to the ground’s indoor cricket school and public areas.

Two new grandstands and a refurbished Pavilion will ensure a capacity of 15,000, capable of rising to 25,000 with temporary seating, and a screen showing action replays, and new floodlights.

The development, which includes a Tesco food store on land nearby, will bring investment of at least £70m and over 500 jobs into parts of Trafford which suffer from low levels of economic activity and employment.

Lancashire chief executive Jim Cumbes said: “The aim of this project was to bring back the Ashes to Old Trafford in 2013. Now we can start improving our chances of turning that dream into reality.”