Arsenal football club has been given the go-ahead for a redevelopment scheme next to its new stadium after the High Court rejected a challenge to the compulsory purchase order for the site.

The High Court quashed a challenge to a compulsory purchase order for the Emirates stadium site in Ashburton Grove, Islington, north London. The decision paves the way for the redevelopment of a large area next to the stadium.

Roger Hepher, director of Hepher Dixon, planning and regeneration adviser to Arsenal FC, said the ruling indicated a strong commitment to regeneration in the area.

He said: “The decision is a clear endorsement of the view that the stadium scheme represents a unique opportunity to regenerate some of the poorest areas in Islington.”

Apart form the 60,000-seater Emirates stadium, the scheme will deliver more than 2000 homes, 28,000 m2 of business space, 14,000 m2 of leisure and retail space and a waste and recycling centre. Holloway Road Underground station will also be upgraded.

Hepher said the decision would be welcomed by the organisers of London’s Olympic bid. He said: “This provides welcome evidence that London has got the will and expertise to deliver world-class sporting facilities, which will also act as the catalyst for long-term regeneration.”

The HOK-designed Emirates stadium is due for completion in time for the 2006/07 season. In December the roof section was hauled into place by Sir Robert McAlpine, the main contractor on the £357m project.