Up to 450 homes will be built on Llanelli's Stradey Park ground

The rugby club had warned a refusal by the Welsh Assembly Government would have threatened its future.

A public inquiry was held earlier this year following objections to the plans from residents.

The club needs the revenue from the homes to finance a new 13,500 capacity stadium on the other side of the town.

Chief executive Stuart Gallacher said the club now hopes the coming season will be its last at Stradey.

Traffic problems

"We have waited desperately for this day and after a long, arduous and costly planning process, we can now push on to an exciting future," he said.

"The sale of the land at Stradey Park will generate vital revenue that will secure a viable financial future for the Scarlets as a world-class club and leading rugby region in Wales."

Some residents had opposed the plans

The Scarlets first unveiled plans to move to a new �15m stadium, jointly financed with Carmarthenshire Council, in 2004.

But just as the housing plans were due to go before councillors last summer they were called in by the Welsh Assembly Government and a public inquiry was held in the town earlier this year.

Some residents living near Stradey claimed houses on such a scale would cause traffic problems, the loss of green spaces and there were fears of flooding.