A high court judge has rejected a legal challenge from local residents and granted Arsenal FC permission to proceed with the construction of a new 60,000 seat football stadium as planned.

The Ashburton Grove site in Islington had already been approved for development by Islington borough council, but the plans were opposed in the courts by local residents.

The ruling gives a green light to the club, which is hoping to have the new stadium ready for the 2005 season.

The stadium has been designed by HOK S+V+E and will be built by Sir Robert McAlpine. It will form the centrepiece of a wider 60-acre development which will include housing, restaurants, a waste station and a casino.