The project is being delivered before the redeveloped gallery reopens this autumn.
When complete, the plaza will improve the accessibility and amenity of the Schoolhill area.
Councillor Marie Boulton, lead for the City Centre Masterplan, said: "This isn't just about improving the setting for the Art Gallery and Cowdray Hall but putting people first through modern place-making.
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"We are delivering a safer, cleaner and more inclusive city centre in line with residents' wishes while complementing our unique architectural heritage by using local granite for the Schoolhill public realm."
The access road outside Robert Gordon's College will be retained, with a modification to the carriageway geometry.
Aberdeen City Council has allocated £550,000 to the Schoolhill project, which received additional support from the regional transport partnership Nestrans.
The project also received funding from Transport Scotland in partnership with the active travel charity, Sustrans Scotland.
(CM/JG)
