The Aberdeen in Colour scheme is a City Centre Masterplan project to use creative lighting as a way of permanently showcasing the city's landmarks and streetscape.
Custom-made lamps would be suspended above a section of Langstane Place, which runs parallel to Union Street, to give it a festival feel.
Earlier this week, the council's City Growth and Resources Committee agreed to contribute towards the cost of the installation. The majority of costs will be met by Aberdeen Inspired, the Business Improvement District operator, which will oversee development and implementation.
Aberdeen in Colour was drawn up by award-winning lighting design consultancy Steensen Varming, which worked on illuminating the Sydney Opera House. In February, the council adopted the Aberdeen in Colour strategy and agreed that partnership funding opportunities should be explored in bringing forward its 12 individual schemes over the next five years.
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Cllr Marie Boulton, City Centre Masterplan spokeswoman, said: "We are delighted to be progressing this scheme under the City Centre Masterplan.
"A public survey showed that creating engaging public spaces at night and activating lanes were among the favourite choices for lighting treatments.
"We are especially pleased to be moving this forward with Aberdeen Inspired, which like the City Council is determined to help our city shine at all times."
Adrian Watson, chief executive of Aberdeen Inspired, said: "Aberdeen Inspired is absolutely committed to seeing the City Centre Masterplan deliver the much-needed transformational projects, such as creative lighting, for the heart of Aberdeen.
"This particular proposal ought to act as a catalyst for an exciting city centre programme of state-of-the-art lighting.
"We said from the outset that we all have a stake in how the Masterplan progresses and our city centre businesses have certainly shown their intent."
(LM)
