The Royal Shakespeare Company (RSC) is set to embark on a £100m transformation of the Royal Shakespeare Theatre in Stratford-upon-Avon.

The redevelopment will create a new 1,000-seat auditorium – the largest thrust stage with a tiered auditorium worldwide – which will reduce the amount of space between the actors and the audience to 15 m.

A new double-height rooftop restaurant will offer dual views across the River Avon and Bancroft lawns, and a new tower will provide views of Stratford.

In addition, the original 1932 riverside façade, foyer and circle bar will be renovated, and the space and facilities for artists and staff will be improved.

Stratford District Council granted planning permission for the project on 18 April, following two years of public consultation by the RSC.

The project has now been referred to the Government Office for the West Midlands and if formal consent is given in the coming weeks, the project will move into the construction phase.

Work on site is scheduled to begin on 30 April, when the theatre will be decommissioned and technical equipment and heritage items will be removed.

Until its completion in 2010, the RSC will host shows at the Courtyard Theatre, in addition to venues throughout Stratford such as the Civic Hall.

Artistic and executive directors Michael Boyd and Vikki Heywood said: “We very much look forward to continuing our work with partners old and new, to build the best theatre in the world for Shakespeare.”

Funding came from Arts Council England and Advantage West Midlands, in addition to private funding from philanthropists in the UK and US following an international campaign chaired by Dame Judi Dench and Lady Susie Sainsbury.