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The 40 metre high wheel is to be erected for a period of six months and orientated on a north-east/south-west axis between the Mercat Cross and the corner of King Street and Castle Street.
The wheel, owned and operated by Great City Attractions, will have 30 glass-sided observation pods which can each carry eight people, and will be lit by LED lights.
The firm operates several similar wheels elsewhere in the UK, including Manchester, Sheffield, Windsor, Belfast and London.
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Concerns were raised about the privacy of Castlegate residents being infringed upon by the wheel. The company altered its plans and repositioned the wheel approximately 45 degrees to the east to mitigate that.
Councillor Callum McCaig, Vice Convener of Enterprise, Planning and Infrastructure, chaired the meeting. He said: "This is something I would very much welcome. It's got great benefits for that end of Union Street and for the Castlegate in particular. It's an area which is not well utilised.
"The observation wheel will be a real focal point which will bring people into the area and will give people the chance to have a real panoramic view of Aberdeen.
"This is something that's really positive. It's only for six months, so any shortcomings which may arise from it will be temporary, but I think the benefits could last for some time after the wheel has rolled away."
The planning application was passed by eight votes to two.
The proposal has been granted by the Development Management Sub-committee. The cost of operating the wheel will be met by Great City Attractions. It will not be funded by Aberdeen City Council.
(GK/KMcA)
