The 44-suite extension will include a rooftop restaurant, bar and terrace, as well as glass-fronted suites allowing visitors to witness up-close the grandeur of golf’s most historic course.

Valet car parking on the lower ground floor will also be provided.

Designed by Scottish firm WCP Architects, the work will be built using traditional materials in keeping with its location in the historic town.

Initial plans were refused by councillors in December last year amid concerns of its impact on a conservation area, negative impact on residential amenity and reduction of parking. The development had been recommended for conditional approval by Fife Council planners.

Macdonald Hotels deputy chairman Gordon Fraser said: “This is a tremendously positive announcement for our company and for St Andrews, which will give visitors to the town world-class ‘5 Red Star’ accommodation.

“This development will set a new benchmark for luxury in St Andrews, attracting many new visitors every year from all over the world and bringing new jobs and major benefits to the local economy.

“We’ve owned the Macdonald Rusacks since 2001 and are especially conscious of being custodians of one of golf’s most famous locations so will be developing the site with the utmost sensitivity.

“Many of the world’s most famous golfers have stayed with us when playing The Old Course and only this summer U.S. Open winner Justin Rose described his suite as ‘the best room in golf’.

“Indeed, the balconies at the Macdonald Rusacks have often been described as having ‘the best views in world golf’ and our design will carefully blend the iconic location with the most luxuriously-appointed accommodation.

“We’ll now enter the next stages of the planning process and anticipate beginning work during 2016.”