Initial plans for a 50-bedroom hotel were turned down last year but a successful appeal has seen the decision overturned.
The club, near Thame, has now been granted permission to commence building and the first visitors are expected to be welcomed in 2010.
In addition to the 46 double rooms and four suites the new building will also house an indoor swimming pool and fitness suite including a fully equipped gym, sauna and treatment rooms.
Sir Michael Parkinson said: I am, very proud of The Oxfordshire, its such a great piece of golfing terrain, I love this type of golf, and the hotel is going to be a great addition.
The hotel announcement comes soon after first-rate professional golf returned to the championship course with the Ladies English Open, a Ladies European Tour event, contested over three rounds on the Rees Jones layout.
And following these boosts the club hopes to move from strength to strength.
Paul Gibbons, chairman of the clubs owners the Leaderboard Group, said: This is fantastic news for us and theses really are exciting times.
We have one of the finest courses in the country at The Oxfordshire and were finally on our way to having the infrastructure to match that.
Not only will it mean people can come from further afield to stay the night when they visit the club but it will also enable us to expand on what weve already done with the Ladies English Open and bring bigger and better events to a course with a fantastic pedigree.
The Oxfordshire is the only UK layout from renowned course designer Rees Jones and has previously hosted world-class players including Colin Montgomerie and Padraig Harrington in the Benson and Hedges International Open.
For more information on the hotel please call Jennifer Daniels on 01844 277 652 or email Jennifer@theoxfordshiregolfclub.com.