"It's 100 per cent. A deal is done. Council has approved it. All the other stuff is just going through some steps," Mayor Stephen Mandel said after the 10-3 decision by councilors.
"I'm absolutely confident that we will go ahead, and at some point in time all of us will go to a new arena with great pride.
"It will be the nicest, most dynamic arena you've ever been to."
City councilors voted to accept a cost-shared deal for a $480-million new arena, to which a surrounding infrastructure will be added for a final bill of $601 million.
The city is expected to provide $219 million, Oilers owner Daryl Katz will put up $143 million with $114 million to come from potential funding from the provincial and federal governments. A ticket surcharge would raise another $125 million.
A handful of players including Jordan Eberle, Ryan Smyth, Shawn Horcoff, Taylor Hall and Nick Schultz attended the meeting.
"I've seen the outlines of what the rink is going to look like and it looks great," Eberle told reporters.
"Everyone involved with the organization loves playing here," he said. "As far as having a new arena, it's just going to add to that (experience)."
Construction on the arena could start as soon as this August with the arena opening sometime in 2016.