The proposal was approved at a Full Council meeting and comes in the wake of the announcement of the McGinty's Group as chosen operator for the market. The site was previously occupied by a BHS store on Union Street and the old market on The Green and Market Street.
The next steps will see the ongoing processing of a revised planning application which takes into account a modified design for the market which will allow for more open space on The Green and more feature landscaping and lighting.
It is also anticipated that permanent hoarding around the site will be in place over the coming weeks once some snagging works are completed by the demolition contractor allowing for enabling works such as the demolition of the BHS store concrete façade.
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Work is also ongoing to that the design is now progressed to meet the agreed dates for work packages and tender inquiries with the aim of having a site construction start in place by early 2024.
Council Co-leader Councillor Christian Allard, said: "(The) report, on the back of the naming of a local operator, marks another milestone for the creation of the city's new market and the reinvigoration of the city centre as we seek to attract more people into the traditional heart of Aberdeen.
"We are looking to progress the project as soon as possible. It will create not only an indoor food market but also an inviting and spacious outdoor area which can host events and draw more visitors to the historic Green."
Co-leader, Councillor Ian Yuill, said: "The development of the new market will make a real difference in transforming Aberdeen's city centre. It will also provide both a unique shopping destination and a social hub that will play a key part in restoring Union Street as the heart of Aberdeen."
