The Walt Disney Company has received central government approval for its Project Application Report to build a Disney theme park in the Pudong district of Shanghai, China.

The move enables Disney and its partners to move on towards a final agreement to build and operate the park and begin preliminary development work. Upon completion of the final agreement, the project's initial phase would include a Magic Kingdom-style theme park containing some elements tailored to the Shanghai region and others consistent with the offer in Disney's parks elsewhere in the world.

Commenting, Robert A. Iger, president and CEO of The Walt Disney Company said: "China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for The Walt Disney Company in mainland China."

The new Shanghai theme park - costing an estimated US$3.5bn (£2.1bn, 2.3bn euro, CNY 23.9bn) and with a 2014 projected opening date - will increase Disney's vacation destinations to six, joining Disneyland Resort, Anaheim, California and Walt Disney World Resort, Lake Buena Vista, Florida, both in the US; Tokyo Disney Resort, Urayasu, Chiba, Japan; Disneyland Paris, Marne-la-Vallée, France; and Hong Kong Disneyland Resort on Lantau Island.

However, some local observers believe that the Hong Kong site - of whose visitors more than one third come from mainland China - will suffer once the new park is open. Hong Kong is the smallest of Disney's theme parks, at 1.26sq km, while previous reports have said that the Shanghai site will cover around 4sq km.