East Riding councillors agreed the plans for the massive building at Nunburnholme Wold, Warter, at a meeting today.
Multi-millionaire Malcolm Healey, who owns Wren Kitchens and online electronics retailer Ebuyer, bought the 12,000 acre estate in 1998 for around Â£50m.
The new house will be built on the site of Warter Priory which was demolished in 1972.
The plans include clearing the lake of debris from Warter Priory and creating a new modern informal garden and restoring the parkland to the south.
Historian Dr Neave, who co-authored Lost House of East Yorkshire, which recorded the history of Warter Priory, said the new house would probably be the largest house built in East Yorkshire in the 21st century.
He said it was a reflection of the times: "The great heyday of the country houses was just before World War One. In a sense we are getting back to that wealth.
"A number of industrialists have been putting up huge new houses - it has been a feature of the last 10 to 20 years.
"They have gone to one of the top firms, so architecturally it should be OK."
People were able to get a glimpse of Warter Priory from the road, but Dr Neave thinks the new stately home will be very much a private place.
He added: "I don't think we will necessarily see it."
Coun Mike Stathers, who recommended approval, said it would be a "demonstration of the flamboyance and opulence of wealth."
He said: "It's great to see that sort of investment in East Yorkshire."
Described as a "shrewd businessman", Malcolm Healey made his fortune in the kitchen business, acquiring the Hygena brand and selling it for an estimated œ200m.
Brother Eddie built the Meadowhall shopping centre in Sheffield.
The plans were technically deferred for completion of legal agreements for contributions towards open space and affordable housing , but then will be approved.