Major League Soccer has announced that Minnesota United will be the league's newest expansion team from the 2018 season.

The club is owned by a Minnesota-based consortium led by Dr Bill McGuire.

Maguire, a former CEO of UnitedHealth Group, purchased Minnesota United in 2012 when they were known as the Minnesota Stars.

United, who are due to move into a "world-class, downtown soccer stadium", currently play in the North American Soccer League.

"We are proud to welcome Minnesota to Major League Soccer," MLS Commissioner Don Garber said in a statement. "The ownership group's commitment to soccer and the community, the area's growing millennial population and the region's rich tradition of supporting soccer at all levels in Minnesota were key indicators that this was the right market.

"The passionate soccer fans in Minnesota will soon have a world-class, downtown soccer stadium that will serve as the home for the new MLS team and become a destination for marquee international sports events."

The club is working to finalise plans for their new stadium by July 1.