Officials at the Vulcan to the Sky trust, which owns the former cold war jet, have had planning permission approved to create a hangar on a site next to Doncaster Sheffield Airport which was once used as a sewage treatment works.
Officials say the approval will help them arrange a deal with investors to take the £3million project forward.
Dr Robert Pleming, chief executive of Vulcan to the Sky Trust, the charity that owns and operates Vulcan XH558, said: "I'm absolutely delighted that we now have the planning permission in place. In terms of the way forward for us, having the planning permission granted means we are now looking much more positive towards the future.
"We have been working hard towards this and and it marks a major milestone in our efforts to establish a permanent presence at the airport.
"It is very welcome news in terms of our raising the £3 million that is needed. We are not using traditional fund raising methods - we are looking for an investor or consortium of investors to run it as a commercial operation.
"Discussions are ongoing and this news will help.
"The time scale is as soon as possible. We want to move ahead. The actual building process is expected to take 12 months."
Artists impressions which formed part of the planning application for the hangar included the Vulcan, a 1950s Canberra bomber, which the trust hopes to restore to flying condition, and a Supermarine Swift cold war jet fighter, inside the building.
The proposals are to use the aircraft as the centrepiece of a science museum which has been compared with the Eden Centre in Cornwall.
Although the Vulcan will no longer fly, it would be more than a museum piece as it would be taken outside to do powered taxi runs in front of the public, which would mean the famous roar of its jets would still be heard.
The plans also include a shop, cafe, bar, education, conference, office, kitchen area, and assembly areas where work would be carried out on the jets.
Bosses hope to use it for conferences and educational events.
The site for the proposed hangar is next to the boundary of the airport and is a site that was formerly part of RAF Finningley, which has a direct existing taxi way to the airport's runway, which would allow the Vulcan access to the airport area. The public would get to the site from Hayfield Lane.
A decision to end the Vulcan's flying days was made because of its ageing airframe, and it made its last flight in October 2015.