The £7m extension to the 128-year-old hotel will also include a rooftop restaurant, bar and terrace along with glass-fronted suites.
The development, which will overlook the 18th green at The Old Course, has been designed by WCP Architects and will be built using traditional materials.
The 44 suites will range from 350 – 475 sq ft and the rootop restaurant will have space for 145 diners.
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The new restaurant, bar and 1,050 sq ft roof terrace will all offer 'spectacular' views over the Old Course and the West Sands.
The company is confident the additions will achieve a 'Five Red Star' status.
The extension will also provide valet car parking on the lower ground floor.
Macdonald Hotels deputy chairman Gordon Fraser warmly welcomed the planning decision: "This is a tremendously positive announcement for our company and for St Andrews, which will give visitors to the town world-class '5 Red Star' accommodation.
"This development will set a new benchmark for luxury in St Andrews, attracting many new visitors every year from all over the world and bringing new jobs and major benefits to the local economy.
"We'll now enter the next stages of the planning process and anticipate beginning work during 2016."
(LM)
