"Special committees have begun estimating the value of real estate in the area in order to expropriate them for the purpose," Minister of Municipal and Rural Affairs Prince Miteb Bin Abdel Aziz said in a press release.

The plan, approved by King Abdullah bin Abdel Aziz, stipulates expropriating real estate on the northern and northwestern sides of the mosque, covering an area of 300,000 square meters.

The current structure covers an area of 356,800 square meters including the outdoor and indoor praying spaces.

The government is expected to pay generous compensations for landlords, the English-speaking Saudi daily said.

"The technical team for the expansion will continue its work until the project is completed on time," said Prince Miteb.

The expropriation and compensation policy was first adopted by late King Fahd in the 1980s.

Under King Fahd, a new wing and an outdoor prayer area were added to the mosque.

Another expansion saw the building of more minarets and prayer area in and around the mosque itself between 1988 and 2005.

It also saw the addition of 18 gates, three domes and the installation of nearly 500 marble columns.

In 2007, the entire mosque was fitted with air conditioning so that worshipers could perform their prayers in comfort.

Al-Masjid al-Haram is Islam's holiest shrine and home to the Ka`bah, the direction Muslims take during prayers.

Roads, Tunnels

The new expansion would include the construction of separate roads for vehicles and pedestrians as well as a service station, the London-based Al-Hayat daily reported Sunday.

Pedestrian tunnels equipped with elevators will be also established for the welfare of the faithful.

The new project applies utmost safety standards and will see the addition of more prayer areas to meet the increasing number of Muslims faithful yearlong.

New hotels will also spring up in the expropriated area to accommodate the visitors.

More than 10 million Muslims visit the mosque annually to perform hajj and `Umrah, according to Saudi figures.

The government has allocated up to SAR 40 billion ($10.6 billion) to implement new expansions and projects at the Grand Mosque area, according to Al-Hayat.

It has been investing hundreds of millions of dollars into making hajj and `Umrah as comfortable and safe as possible.

Chief among the projects in the holy lands is the construction of the SR4.2 billion Jamarat Bridge, set for completion next year.

The bridge ensures a smooth stoning ritual, which proved deadly in previous years.

The government is planning to set up five monorails to link Islam holy sites to ease the movement of millions of Muslims who come every year for hajj and `Umrah.