The club is now looking to move into its new home in time for the new 2004-05 season.
"We are delighted with this outcome. it does not come as a surprise, as we knew our proposals were sound, our planning application was of the highest quality, and the council's handling of the application was expemplary," the club's director Ken Friar said in a statement.
"Nevertheless, it is a relief to have the challenge rejected. Now we are able to get on with building the new stadium and all the regenerative development that will go with it."
As well as a football pitch, the Ashburton Grove stadium will come complete with housing, restaurants, offices and a casino.
