The Marylebone Cricket Club (MCC) has been granted permission by Westminster City Council to replace the Warner Stand at the London ground.
The MCC said the new structure, which includes a 135-seat restaurant with views of the ground, will improve sight-lines and accessibility.
Work is set to begin on the Â£21m project at the end of the 2015 season.
The redevelopment must first be approved by the club's membership, with the committee set to seek approval at a special general meeting in the summer of 2015.
The current Warner Stand was built in 1958 and its replacement is the first phase of development in the 15-year Masterplan for Lord's, which was unveiled last May.
MCC chief executive Derek Brewer said the club "wants Lord's to be the world's finest cricket ground and this new stand combines the best in architecture with world-class facilities to help achieve that".
"Lord's celebrates its 200th birthday this year and we have a duty to ensure any changes made to the ground will stand the test of time and bring long-term benefits."
He added the MCC, who remain the guardians of the laws and spirit of cricket, will continue to consult with local residents in St John's Wood about the ground's redevelopment.
Plans to redevelop a stand at Lord's, the home of cricket, have been given the go-ahead.