The club’s plans to regenerate the area around Celtic Park, which were unveiled earlier this year, have been approved by council officials.
The club released images of the proposed development, estimated to cost £18 million, which will also include a new ticket office and retail store.
The hotel will be based on London Road, outside the main stand of Celtic Park and across from the Emirates Arena.
Richard Brown, executive director for development and regeneration services at Glasgow City Council, has now written to Celtic informing them planning consent has been granted.
No objections were lodged to the plans and the decision notice states that building work must be commenced within three years.
In a statement to the council in support of their application Celtic said the development would create up to 120 jobs, provide and economic boost to the area and reduce congestion around the stadium.
It said: “The history of the football club and its worldwide support mean that Celtic Park regularly attracts visitors outwith match days with stadium tours, the club shop and ticket office.
“Provision of a club museum and improved shop/ticketing facilities as proposed will greatly enhance the visitor experience and will help to sustain jobs and economic activity throughout the year. The provision of a hotel along with the club facilities will increase the attractiveness of the location as a tourist destination with spin off benefits to the entire area.
“The proposed development will result in the creation of much-needed new employment opportunities associated with the hotel and museum.
“The current lack of hotel accommodation in the vicinity means that everyone attending events at the football stadium or the arena requires to travel on the day of the event adding to traffic volumes in the surrounding area.
“By locating the proposed hotel immediately beside the stadium and arena pressure on the local transport network will be reduced, particularly at times of peak movement. Experience elsewhere also demonstrates that hotel restaurant and café/bar facilities adjoining a football stadium can help to spread the timing of trips over a greater time period avoiding peak periods.”
Plans for the hotel building states it will be up to five storeys in height and will include a restaurant, cafe and bar.
Details of the project’s approval emerged a week after the Premiership champions, who defeated Anderlecht 3-0 in the Champions League on Wednesday - revealed pre-tax-profits had rocketed to £6.9 million.
The development follows on from regeneration of the east end of Glasgow for the Commonwealth Games in 2014, and the separate development of the Sir Chris Hoy Velodrome and Emirates Arena nearby.