Plans for the Broad Street scheme were approved at a council meeting earlier this month.
Designed by architects Halliday Fraser Munro, features include creating a transformed streetscape extending from Union Street to the Gallowgate/Upperkirkgate junction, resulting in a pedestrian-priority area capable of staging range of cultural events.
Other proposals involve installing a water feature, a raised lawn area, new trees and granite bench seating as well as lighting improvements to Marischal College.
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The funding from Sustrans Scotland follows close collaboration between the sustainable transport charity, Aberdeen City Council and the architects.
Cllr Willie Young said: "This is yet more great news for Broad Street and for our City Centre Masterplan vision. Sustrans Scotland has been as enthused as we are about these exciting plans for Broad Street. The award of over a million pounds underlines that this a project of national as well as local significance
"The City Centre Masterplan is fast becoming a reality and the feedback from over 1000 people taking part in the Broad Street consultation has helped shape the design work, making this a truly civic project."
Andy Keba, Sustrans Scotland's Community Links Coordinator, added: "We are committed to ensuring that individuals and communities are better connected by safe and accessible walking and cycling facilities and the new and improved Broad Street will provide both those who live in and visit the area with excellent facilities to travel actively."
(LM/CD)
