The scheme involves the construction of a six-storey grandstand and conference centre. Works are due to begin this autumn and will involve the demolition of an existing stand and the creation of a large public lawn.
Initial plans for the scheme were rejected by Chester councillors in March. This resulted in the Racecourse redesigning its plans and making significant changes, including the cancellation of a planned multi-storey car park.
The new scheme addressed concerns over the height of the grandstand and fears that it may block views of the racecourse from the City Walls.
Chester Race Company Chief Executive Richard Thomas said: “The Masterplan is very important to the future of the Race Company and represents a massive investment in Chester.
“The Conference Centre and Grandstand will be a fantastic civic building for Chester and, on race days, provide a new viewing and hospitality facility like no other.”