The project will be funded by director Brendan Flood, who is a self-made millionaire via his regeneration firm Modus Properties, with building work starting next year if planning permission is given.
"One of the attractions of Burnley is that we have a good stadium which can be quite intimidating for away teams," said Flood.
"Oppositions teams don't like coming to Turf Moor and we've got a lot of established tradition that we can be proud of.
"I've looked at other clubs, such as Wigan, Bolton and Sheffield United, and seen why our location has a lot of benefits, and why we're likely to be successful with a project such as this."