Plans for a £28m terminal expansion that could create the jobs have been given the green light by Leeds City Council.

But, environmentalists lobbying the crucial meeting warned today that the decision will lead to increased congestion and pollution.

The plans, which were agreed subject to minor negotiations following a four-and-a-half hour meeting in Leeds Civic Hall, include a two-storey building extension with a new departure lounge, expanded security zone and improved shops and immigration facility.

Airport owners Bridgepoint Capital predict up to five million passengers will use the expanded airport a rise of around two million on current figures and this will create up to 2,000 jobs.

The scheme stalled in April after the council called for better transport links.

The panel, which voted 4-3 in favour of the scheme, heard a new report compiled by the authority's chief planning officer had recommended approval subject to a raft of conditions to combat congestion and improve public transport.

John Parkin, Leeds Bradford International Airport's chief executive, was delighted that the plan had been agreed in principle.

Following the meeting he said: "It is critical to the airport. Its ability to serve demand for air travel from this region demands that we upgrade and enlarge the facilities and drive up the quality of the passenger experience.

"It needs to be transformed. This is the biggest single investment ever in the airport.

"It is really good news for the people of this region and means that they can have a much better experience."

Councillor Neil Taggart (Lab, Bramley and Stanningley) said after the meeting: "We asked lots of questions and the planners have gone away negotiated and talked.

"Even those members who voted against saw that a lot of work had been done. I am very supportive of it and think it's very important for the city."

Environmental campaign group Friends of the Earth held a demonstration outside the Civic Hall before the meeting.

The group's Yorkshire and Humber campaigns co-ordinator Simon Bowens said after the meeting: "We need to see whether other options are available to us now.

"We are very disappointed with the decision. We asked the right kind of questions but have got the wrong decision.

"It now looks like the development will go ahead which will lead to years of congestion for the local residents living around the airport and will pave the way for higher and higher carbon emissions in the future."