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The completion of the stand will add a further 3,500 to the current capacity in line with the overall plan to complete a 16,000 capacity stadium.
Karl Oyston added that he had already appointed the construction managers ahead of today's announcment and that the programme of works was scheduled to take approximately 40 weeks.
Oyston clearly hoped that the stand could be capable of seating supporters by the end of the year and confirmed that this Summer's players transfer budget would not be affected by todays news.
Since the completion of the present stands the chairman had been subject to increasing criticism from fans for the lack of progress with the stadium development whilst the team had attained Championship status.
This announcement follows previous updates of the club's intention to increase the capacity of the present temporary East stand structure.