Portsmouth creditors voted in favour of Balram Chainrai's Company Voluntary Arrangement proposal at a meeting at Fratton Park on Tuesday.
Former Pompey owner Chainrai now has 28 days to begin the process and bring the League One club out of administration.
Administrator Trevor Birch, a partner at PKF accountants & business advisers and joint administrator of Portsmouth Football Club, said via a statement on the club's official website: "Today's decision is another important milestone for Portsmouth and takes the club a significant step closer towards leaving administration.
"We are beginning to see light at the end of what has, at times, been a very long and dark tunnel. This is, however, still dependent on restructuring the player cost base, which is a condition of both the existing offers.
"As well as securing approval of the CVA, we have also agreed modifications that will enable us to enter negotiations with other interested parties. As a result, we plan to meet with the Pompey Supporters' Trust, which submitted an indicative offer for the club last Friday, in the next few days in order to discuss its bid. The shareholders have also approved the CVA."