Texas Rangers – the Major League Baseball (MLB) franchise – has moved a step closer to building a new US$1bn (£680.1m, €894.2m) stadium after the council agreed a financing package for the development.

Arlington City Council unanimously approved a master agreement in which the funds for the stadium would be split between the team and public finance. A public vote will now be held in November to ask residents if they want to increase funding for the construction of the ballpark.

The new stadium would replace the city-owned Globe Life Park in Arlington, and is expected to include a retractable roof for climate control and shelter for fans over the hot summer months.

If plans are fully approve it will be built on the site of the team parking area just south of Globe Life Park, which may be converted into office space and new parking facilities.

A study by HR&A Advisors found that a new ballpark would create annual economic impacts of US$74m (£50.3m, €66.2m) for Arlington, contributing US$2.4bn (£1.6bn, €2.1bn) between 2016 and 2054.

Rangers co-chair Ray Davis said: “The Rangers are excited about the possibility of calling Arlington home for many years to come, and we are committed to building a world-class facility which will provide the best possible experience for our fans.”