The development would see the construction of a 2,000-seat stadium for the Northern Premier League Division One North side, along with a sports hall, two swimming pools, a gym and dance studio, and other facilities on a 4.6 hectare car-park site in the town.
The Scarborough Borough Council and Wrenbridge Land development would allow for Scarborough Athletic to return to the town from its current base at Bridlington.
Recommending the plans for approval, council planning officers said that almost 80 per cent of consultation responses had been positive toward the development, with objections mainly focused on traffic, noise and parking issues.
"Where negative consequences are likely to occur they are not considered to be of a scale to warrant a refusal of planning permission or they can be suitably mitigated by conditions," they said in a report to a planning committee meeting last week.
"The proposed development as submitted is in principle acceptable, but there are certain aspects where additional details need to be agreed and implemented and/or specific safeguards need to be put into place."
Among the conditions related to the development are the agreement of suitable travel plans, exterior lighting arrangements, and drainage systems.
Scarborough Athletic chairman Dave Holland said the approval was "fantastic" news for the club and local residents.
"The new community football ground will also enable the club to return back to playing in Scarborough, and the approval brings us an important step closer to achieving this," he said.
Scarborough Athletic was formed in 2007 following the winding-up of Scarborough FC with debts of more than £2 million.
The new development will be funded by the sale of Scarborough FC's former home in the town.