It will provide space for 1,200 cars and a terminus building next to the he M621 junction seven roundabout by Hunslet Cemetery.
The Stourton Park and Ride - which is likely to cost around £30m, with £27m from West Yorkshire Combined Authority (WYCA) - aims to reduce the number of car journeys into Leeds city centre by providing alternative bus travel to deal with a lack of parking spaces in the central area and address its air quality problems.
Councillors on the City Plans Panel granted the proposals in principle in January, and the latest approval on Monday follows "some due process being updated", said a spokesman for Leeds City Council, the applicants.
It comes after two other park and ride facilities were built at Elland Road and Temple Green, which are at capacity and attracting more use than predicted respectively, according to planning documents.
However, it can raised concerns among residents of Belle Isle, Middleton and Hunslet campaign under the banner of Stop the Park and Ride in Stourton (SPARS).
Members feared its placement next to the cemetery had “no regard to the families and friends of those buried there,” they argued in a deputation to applicants council, and said that it will increase traffic, claimed no alternative sites were investigated and would “create mayhem on our bus routes” during building work.
In a formal response signed off by director of city development Martin Farrington in February, the council said it did “recognise and empathise with the concerns raised” and wanted to “work collaboratively”.
Frequent bus services are planned between the facility and the city centre, with six buses operating every hour, providing a service every 10 minutes.
WYCA research shows that services will have a journey time of 13 minutes, documents state.
A designated bus lane will be created through the site and on the surrounding A61, which planning reports say will also benefit the existing 110, 444 and 446 services.