The news has been welcomed by advocates of so-called therapeutic cloning - in which stem cells could be created by substituting the genetic payload of an unfertilised human egg with a complete adult genome. Stem cells can be harvested from the resulting cloned cells could be used as to grow matched replacements for defective organs or tissue.
However, it as also been criticised by those who fear that this work could lay down the groundwork for those interested in reproductive cloning, i.e. using the resulting stem cell to create an identical copy of the DNA donor.
The anti-abortion ProLife Party has said it is considering mounting a legal challenge against the Human Fertilisation and Embryology Authority's decision to allow the research to go ahead.
There is no question that the green light puts the UK at the forefront of global research in this very promising area of medicine.
The Newcastle Human Embryonic Stem Cell Group, part of the government sponsored Life Knowledge Park (LKP), is now launching a funding appeal to accelerate research, and is seeking private sector partners to help the UK stay ahead of international competition.
In early 2003, the HESCG became one of the first two groups in the UK to derive human ES (embryonic stem) cells from spare IVF embryos.
Two members of the group, Professor Alison Murdoch of the Newcastle NHS Fertility Centre and Dr Miodrag Stojkovic, a Reader in Stem Cell Biology and Embryology at Newcastle University, applied to the Human Embryology and Fertilisation Authority (HFEA) for the license to undertake 'somatic cell nuclear transfer', as the procedure is known, in February 2004.
Prof Murdoch said: "Realistically, we have at least five years of further laboratory-based work to do before we move to clinical trials but this could be reduced if we receive additional funding which would allow us to increase the size of our team."
The researchers note that the research could lead to new stem cell-based treatments for Parkinson's, Alzheimer's and diabetes.
Under UK law, therapeutic cloning of embryos was made legal by an amendment to the Human Embryology Act in January 2001. However, reproductive cloning of humans remains illegal and is punishable by a 10-year prison sentence and unlimited fines.