An Olympic training centre will be built at the former American airbase at Upper Heyford.
Empty and disused military buildings will be converted to provide sports facilities, including beach and court volleyball and fencing.
Empty sports pitches will also be rebuilt for the country's baseball and softball teams in preparation for the 2004 Athens games.
The centre is being set up by the National Sports Training Centre, a company formed by the five sports associations, and has the backing of the British Olympic Association.
The plans were approved by members of Cherwell District Council's south area planning committee.
Cllr Debbie Pickford, the Mayor of Bicester, welcomed the news the project would go ahead.
She said: "A few years ago we had the sports academy bid at Upper Heyford taken away from us. That was an opportunity that was sorely, sorely missed.
I think this sports training facility is an excellent idea and I would it to remain there for as long as possible."
The former gymnasium and bowling alley - at present empty shells - will be converted into facilities for the national volleyball and fencing teams.
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