Leicester Tigers are planning an £8 million redevelopment of their Welford Road stadium.
A new three-storey stand will replace the old clubhouse and boost capacity to more than 26,000.
Construction will start in May.
Leicester Tigers have admitted they are 'shocked and disappointed' that Welford Road has not been included among potential venues for the 2015 Rugby World Cup.
Villa Park, Coventry Stadium, Pride Park and Leicester City Stadium are the four Midlands venues which have been included as potential stadiums up for consideration to host matches during the World Cup.