Muse in joint venture with Aviva Investors will lead the redevelopment of the council’s previous headquarters site, known as St Nicholas House.

The proposal is to build offices, a boutique hotel, restaurants and shops around a small civic square.

The council will lease the development from Muse and receive a proportion of the rental profits for 35 years, after which the site and development will transfer into council ownership.

A public consultation lasting 12 weeks will be carried out before any planning application is submitted. The site will be developed in a single phase and Muse aims for completion during 2016.

John Morgan, chief executive of Morgan Sindall Group, said: “We have a strong track record in similar joint venture regeneration projects and are confident that we will deliver a successful living and working destination.

“We are excited to be working with Aberdeen City Council and look forward to bringing innovation and long-term value for the people of Aberdeen.”