UPDATE 4-Disney takes China stride as Shanghai park gets nod

* Park may take years to contribute to Disney bottom line

* Approval marks small milestone for foreign media in China

* Disney must still work out detailed deal with Shanghai

* Park cost estimated at $3.6 bln - media (Adds Shanghai, villagers, graphic link)

By Samuel Shen and Sue Zeidler

SHANGHAI/LOS ANGELES, Nov 4 (Reuters) - The Walt Disney Co's (DIS.N: Quote, Profile, Research) breakthrough deal to build one of its signature theme parks in Shanghai marks a major advance for Western media and entertainment firms trying to crack a tough China market.

Wednesday's government approval for the theme park caps years of on-off talks between Disney and Chinese authorities, who are wary of too much foreign influence in the highly sensitive sectors of media and popular culture.

The new park planned for the Pudong new district of China's financial capital will take years to contribute to a company that rakes in more than $30 billion in annual revenue.

But analysts see the move as an important step forward for Disney and other Western media firms to make inroads into the vast and untapped Chinese media and entertainment market.