Alistair Darling has paved the way for expansion of Wolverhampton Airport, but the extent of growth will depend on careful interpretation of wording in the Aviation White Paper.
The document talks about development on a "limited scale" in line with regional planning and transportation priorities.
Mr Darling also spoke about the Government's wish to encourage the growth of regional airports in order to support economic development strategies.
The White Paper says: "Wolverhampton Airport should continue its role of serving business and general aviation. The airport could be capable of delivering commercial services on a limited scale, but should only do so in line with regional planning and transportation priorities, and the scale of development at the site must take account of the constraints imposed by the lack of strategic road access.
"With this in mind, any such development should be a matter for decision locally."
It would be a matter for South Staffordshire District Council, the planning authority covering the rural WA at Halfpenny Green, to interpret "limited" growth and to judge suitable road access to an expanded airport.
Graham Silk, chairman of WA, welcomed the White Paper which he said gave approval to move forward with a growth plan to start commercial flights.
Mr Silk added: "I am happy with the White Paper and view it as a green light for us to move forward with phase one of our development into a London City Airport-style operation.
If WA's planning application is successful, phase one will see its existing 2,000-metre runway shifted slightly to the north and the purchase of surrounding land. WA hopes to attract one million passengers a year with the development.
Mr Silk added that, if this proved successful, he hoped phase two of WA's plan, for a 2,200-metre extended runway and more than four million passengers, would follow.
Local MP Ian Pearson welcomed the decision to allow only limited development expansion of Wolverhampton Airport.
The Dudley South Labour MP said: "The White Paper proposals for Wolverhampton Airport are an acceptable compromise for my constituents."
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