"The Project Application Report (PAR) for a Disney theme park in the Pudong district of Shanghai has received approval from the relevant authorities of the central government of China," the company said in a statement on Tuesday.

"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," Disney president and CEO Robert Iger said in the statement.

The PAR approval, the company said, will allow Disney and its Shanghai partners to "move forward toward a final agreement" to build and operate the "Magic Kingdom-style theme park with characteristics tailored to the Shanghai region."

No estimate was provided for the upcoming project nor time frame for its commencement.

The South China Morning Post on Monday quoted an unnamed Chinese government official who said the 3.6 billion dollar amusement park had been approved.

Shanghai has been working for almost a decade to land a world-class amusement park, partly to shore up its lagging economic growth compared with other Chinese cities, the newspaper report said.

There had been speculation that the announcement would come during US President Barack Obama's visit to China later this month.

Hong Kong opened a Disney theme park in 2005.

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