Christchurch City Council has voted in favour of buying seven hectares of land in the central business district for a new AMI Stadium.
The decision is part of the draft annual plan for the next financial year and will now now be open for public consultation.
The draft plan includes spending on 10 major council-owned facilities damaged in the earthquake on 22 February 2011.
Major earthquake damage has meant the old AMI Stadium cannot be used. A temporary stadium, which could be used for up to four years, opened at Addington in March to host rugby matches.
The proposed new stadium would be on another plot of land and would allow for the building of a 35,000 seat facility that could host test matches.
The council is proposing a 7.47% rates increase for 2012/ 2013, including a 2% increase to pay for the rebuild or repair of council facilities.
Council accused of asset stripping
Christchurch's QEII stadium and aquatic centre may only be partially rebuilt, with a new centre in the central city taking its place as the city's premier aquatic centre.
Christchurch City Council has chosen this as its preferred option.
QE II is in the Burwood Pegasus ward.
Its newly elected representative, and the former Anglican dean of Christchurch, councillor Peter Beck fought for the retention of the existing facilities, but lost in a narrow vote.
He maintains the fight is not over and is calling on Cantabrians to write in support of QE II as part of the consultation process between now and June, when a final decision will be made.
A group opposed to moving large parts of Christchurch's QE II sports facility to the central city is accusing the council of asset stripping the east of the city.
Keep QE II in the East spokesperson Louise Wedlake says building a new metro-sports facility in the CBD is the last thing the eastern suburbs need right now.
Ms Wedlake says most of the insurance money from QE II will be used on the CBD sports facility and this is robbing the east of its assets.