Bristol City FC has overcome another major hurdle towards realising its plans to build a new £92 million stadium at Ashton Vale.

Local Government Secretary John Denham has decided he does not need to make a final decision on the issue and therefore a public inquiry will not have to be held.

An inquiry would have taken up to a year to complete and therefore delayed a start on building work – assuming that it found in the club's favour.

Colin Sexstone, the club's chief executive, said the club was delighted to have reached this major milestone.

He said: "This is great news and another major hurdle overcome.

"The decision by GOSW (Government Office South West) and the Secretary of State to let Bristol City Council determine the application is a significant step forward.

"It has been the culmination of nearly two years of hard work to bring the project to this stage.

"Other important hurdles remain, and more hard work will be required from ourselves and other partners, but this is a huge milestone for us.

"Bristol is also a candidate host city in England's bid to host the Fifa World Cup in 2018, and so this decision is further evidence of our ability to produce a technical bid that exceeds Fifa's expectations.

"We do also understand the local sensitivity of the new stadium and are making determined efforts to engage with the local communities so there is greater understanding about the project and we can all move forward together."

City councillors gave their overwhelming support to the stadium plans last month.

But the scheme had to be put before the Secretary of State because the site for the new stadium is designated as green belt.

The club now has three major hurdles to overcome:

● It needs planning permission from North Somerset Council for a new entrance next to the Long Ashton park and ride site. The stadium

would be within the city council boundary but the entrance is over the border in North Somerset.

Talks between the club and the council are still in progress following a recommendation by a planning committee to refuse permission.

● A planning application by Sainsbury's to move its store from its Winterstoke Road site to Ashton Gate.

The plans have now been submitted to the city council and should be considered by councillors on a date to be fixed in the next few months.

The club needs to sell the Ashton Gate ground in order to raise funds to help pay for the new stadium.

● Residents in Ashton Vale have called for the stadium site to be given town green status. The move would effectively overrule planning permission and stop the new stadium from being built.

An inquiry under a council-appointed independent inspector, who then makes a recommendation to a council committee, is expected to be held during the next few months but it is not likely to take as long to complete as a full planning inquiry into the stadium.

The club is working to a target of kicking off the 2012-13 season at Ashton Vale.

Bristol's deputy council leader Councillor Simon Cook said: "This is great news for Bristol and the club."