Cheltenham racecourse was on Thursday granted planning permission by Cheltenham Borough Council for the track's proposed development project.

The Jockey Club's approved blueprint for the STG45 million ($A74.72 million) project includes the creation of a new grandstand, redesigned annual members' facilities and new general public viewing areas and private boxes.

The main development is scheduled to begin immediately after the 2014 Cheltenham Festival, with a planned completion date ahead of the Festival in 2016.

During the construction period, Cheltenham will be able to continue staging its race programme as normal.

A detailed planning application for the development was submitted to Cheltenham Borough Council at the end of April after a successful public consultation.