City are to discuss plans for a proposed £50m expansion of the Etihad Stadium by 2015.

The Blues want to speak with local residents before forging ahead with the scheme, which would add a 6,000-seater third tier on the South Stand and increase capacity to 54,000.

The club, sensitive to the escalation of cost of match tickets, hopes to provide a significant number of cheap seasoncards - costing under £300 – in the new section, which would also include an hospitality area.

The decision to start consultation on the project was given the go-ahead at a board meeting held in London on Saturday morning.

City will start talking to residents closest to the stadium next month, and could submit a planning application in Autumn for third tiers to be added to both ends of the ground.

That would eventually raise the capacity to 60,000 – making it the third biggest club ground in England behind Old Trafford and the Emirates - but while they want to press ahead with the South Stand expansion, there are no concrete plans to develop the North Stand just yet.

If the planning stage goes smoothly, City hope to begin work on the South Stand in January, and are aiming for a completion date of summer 2015.

As part of the expansion, the club is set to come up with a revised plan for car parking on match days, to minimise the impact of more fans travelling to games, and for other events.

The decision comes after the Blues sold out all but one of their Premier League games this season, with demand suggesting they will fill the increased capacity.

It is also a response to indications, during consultations with supporters, that more cheap seats and more mid-range hospitality would be welcomed.