A £28m revamp of the NEC Arena is set to begin within weeks after Solihull Borough Council granted planning permission for the work.
The project, which includes plans for new seating, toilets and restaurants, will raise the venue's capacity by about 2,000, as well as providing a VIP "party deck".
About a million people a year visit the facility, which will be renamed the LG Arena in September under a sponsorship deal with the global electronic firm.
Phil Mead, managing director of NEC Group Arenas, said: "We are pleased to announce that work will now start on creating brand new seating, hospitality, bars, restaurants and other essential customer facilities which will create an outstanding customer experience.
"The arena is already one of the region's biggest attractions and these plans, together with the LG partnership, will continue its legacy for future generations."