The Football Association said all the contracts associated with the stadium in north-west London had been signed and the finance was in place and guaranteed.

'We must remember Wembley is an icon and every player there has ever been has wanted to play at Wembley. We believe we will have the finest stadium in the world,' FA chief executive Adam Crozier told a news conference.

The £750m project, one of the most expensive in world sport, centres on a new 90,000-seat arena. It is expected to take around four years to build and work will start on the project on Monday.

'It's been a long saga. I am very happy to say the saga is now over, or chapter one is,' said Tessa Jowell, the minister in charge of sport.

'We now have to build the stadium on time and within budget.'

The new design means the twin towers of the old Wembley, traditional venue of the FA Cup Final, will be knocked down. The focal point of the new stadium will be a huge 'triumphal' arch.

The redevelopment project has been dogged by political in-fighting, spiralling costs and regional rivalry.

The estimated cost of the project, partly funded with money from the National Lottery, has more than trebled since the government announced plans to build a new stadium in 1996.

Under a preliminary agreement signed in May, German bank Westdeutsche Landesbank agreed to fund the bulk of the project costs, injecting a loan of £426million.

Opened in 1923, the stadium provided the backdrop for English football's finest moment when Alf Ramsey's side beat West Germany 4-2 to win the 1966 World Cup.

More than 95,000 fans watched that match but increased seating had cut the crowd to about 78,000 by the time it closed in 2000.

There were widespread calls for a national stadium to be built outside the capital, in the Midlands or in the North.

Critics of the project say there is no need for a new stadium, fearing it may become an expensive 'white elephant', similar to the Millennium Dome in south east London which cost £800million.

Since the last match at the old Wembley, when England were beaten by Germany in a World Cup qualifier in October 2000, the national team has rotated its games among the country's leading club stadiums with a great deal of success.

Domestic Cup Finals have been played in superb atmospheres at Cardiff's new Millennium Stadium.

The F.A. had been expected to sign the 42 documents backing the project on Wednesday but the announcement was held over for 24 hours as the final details were ironed out.