Wolverhampton Wanderers Football Club (WWFC) has announced that work is to start on the redevelopment of its Molineux stadium at the end of the season.

WWFC chair Steve Morgan has confirmed plans for the first stage of the project, which will see the Stan Cullis (North) Stand demolished and replaced with a new two-tier stand. Phase One will cost around £16m, which will be funded from existing cashflow, and will see the capacity of Molineux increase to 31,700 in time for the 2012-13 season.

Extending into the open north east corner of the ground, the new stand will also accommodate away supporters, currently housed in the Jack Harris Flank. If WWFC proceeds with the second phase of the project, the total cost of the development is set to cost around £40m and will increase the ground's capacity to 36,000.

A new club megastore, a café, a museum, a family information centre and hospitality facilities are also mooted as part of the development. Morgan said: "The aim is to drive the club forwards at all levels and to ensure we put our team in the best possible position to compete at the highest level.

"This decision is about a statement of our commitment, belief and ambition and about the planned success for Wolves over the medium to long-term." Wolverhampton City Council, which has approved planning permission, has welcomed the club's commitment to redeveloping Molineux. Buckingham Group has been appointed to deliver the scheme.