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The Chinese central government has approved the plan to build a Disneyland-style theme park in its metropolis Shanghai, the municipal government's information office said in a statement Wednesday morning.

The agreement for a Shanghai Disneyland was confirmed by Roger A. Iger, Disney's chief executive, The New York Times reported. Local media reports also disclosed that the project framework agreement with Disney was approved by Beijing in late October.

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 China's mainland, the Disney president and CEO said.

Analysts estimate the initial park, not including hotels and resort infrastructure, will cost $3.5 billion, making it one of the largest-ever foreign investments in China, the report said.

Disney will own about 40 percent of the Shanghai resort, with the remainder owned by a holding company formed by a consortium of Chinese companies, the report quoted insiders as saying.

Only the themed ride portion -- what Disney calls a "Magic Kingdom-style" park -- of the project needed Beijing's approval; Disney will now negotiate with Shanghai authorities on construction plans, but that is considered a matter of process.

It would be second in China after Hong Kong Disneyland opened its doors in September 2005 and the third in Asia after Tokyo built the first on the continent.