Network Rail hopes to build a two-platform station in the Berwickshire village of Reston, where the old station served residents from 1846 until it closure in 1964.
Approving the proposal - albeit with several conditions attached - the Scottish Borders Council's planning committee called it a “very exciting development”.
It comes after more than 20 years of work from local campaigners.
A feasibility study conducted over a decade ago suggested reopening a station on the East Coast Main Line.
The coastal route connects Scottish cities, like Aberdeen, Dundee and Edinburgh with English ones, like Newcastle, York, and London.
The Scottish Borders Council, backed by the Scottish Government, is understood to have put together a funding package of around £10 million for the project.
Michael Matheson, Transport Secretary, said the fund could “deliver a number of benefits for the communities it would serve".
Plan submitted to councillors include a car park with capacity for 70 cars with enough other land purchased for a further 40.
It will include a new access road, fully accessible lifts and a platform connecting footbridge.
Construction on the new station could begin later this year.
Logan Inglis, Secretary of Reston and Auchencrow Community Council, told the BBC: "Today's good news is a step forward in revitalisation for the communities of Berwickshire and further afield.
"The station reopening means a lot to the communities, not only for the connectivity to Edinburgh but also to Newcastle and further."