Plans to create the development at Rubislaw Quarry has been met with stiff opposition from residents in the west end of the city, with more than 300 objections lodged with Aberdeen City Council.
Now, in a major breakthrough for developers, planning officials have approved the scheme with the final decision to be taken by councillors on planning committee next Thursday.
Rubislaw Quarry was in operation from the mid 18th Century and produced more than 6 million tonnes of Aberdeen granite, which was dispatched across the country for projects such as Waterloo Bridge, the docks at Portsmouth and the Bell Rock Lighthouse.
It has been abandoned since the 1970s with the quarry, which is surrounded by houses and office blocks, since filling up with water.
The proposed £68m development, which is being put forward by Canadian real estate investment fund Carttera, will sit over 10 storeys and will include a gym, a bistro and museum.
Maggie Botchel, from Carttera partner Aurora Planning, said: “We are delighted to see the Council supporting this ambitious and iconic development.
“The commitment of our clients to ensuring that we deliver a high quality building, along with all of the associated infrastructure, and particularly to providing free public access to the quarry, means that approval of this application will bring real social and economic benefits to the City.
“The impact it will have, not just on supporting the delivery of more housing, a priority for both the Council and the Scottish Government, and key economic sectors, but also in opening up one of the City’s best known and most hidden assets and creating a new sense of place at the Hill of Rubislaw will be huge.”