Media and entertainment major Walt Disney Company on Wednesday said it has received approval from the central government of China for building a theme park in Shanghai.

"The Project Application Report (PAR) for a Disney theme park in the Pudong district of Shanghai has received approval from the relevant authorities of the central government of China," Walt Disney Company said in a statement.

The said approval would enable Disney and its Shanghai partners to move forward toward a final agreement to build and operate the park and begin preliminary development work.

As per reports, the cost of the park excluding hotels and resort infrastructure would cost around $3.5 billion, and would be one of the largest-ever foreign investments in China.

"China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for The Walt Disney Company in mainland China," Walt Disney president and CEO Robert A Iger said.

The project's initial phase would include a Magic Kingdom-style theme park with characteristics tailored to the Shanghai region and other amenities consistent with Disney's destination resorts worldwide.

Interestingly, the Chinese government's approval comes ahead of United States President Barack Obama's first visit to China this month.

Disney already has operations in Hong Kong. In November 1999, Hong Kong had announced that the city would be the site of Disney's first theme park in China.