The Brihanmumbai Municipal Corporation (BMC) has given its nod to set up the statue at Girgaum Chowpatty, the beach where the Assistant Sub-Inspector captured Kasab before falling to his bullets on Nov 26, 2008.
It will be installed before the third anniversary of the attacks, BMC officials said.
"The Municipal Commissioner has given a green signal to the proposal. We will now meet with the Beach Monitoring Committee after which the exact location will be decided. The decision on the size of the statue - whether it should be a bust or a life-size - is yet to be taken," Additional Municipal Commissioner Manisha Mhaiskar said.
Though the BMC general body had passed a resolution to erect the statue in 2009 to honour Ombale, the final nod from the civic body came now.