Expansion plans will see the capacity at Villa Park increase to over 50,000.
Stadium renovation work will be completed in the second half of 2027, ahead of the UEFA EURO 2028 Tournament that Villa Park will be a host venue for.
A full rebuild of the stand was first proposed in 2022 but revised plans will adapt and reuse the existing structure for the expansion.
The approach ensures that the capacity for Villa Park will not decrease at any time during construction.
Mayor Richard Parker has also pledged to rebuild nearby Witton Station to improve transport links for fans.
Nassef Sawiris, Executive Chairman of Aston Villa FC, said: “Thanks to the Mayor’s commitment to develop Witton Station and to improve local transport links, this project will mark an important milestone in the Club’s journey to becoming a world-class sports and entertainment venue.
“A bigger, better North Stand will not only allow many more Villans to see their team in person, improving matchday experience, but will also dramatically improve the Club’s ability to invest and compete in the long term.”