Promoters DF Concerts had already moved TRNSMT’s dates from early July to early September in the hope that the event would be able to go ahead without social distancing.
Courteeners, Liam Gallagher, The Chemical Brothers, Ian Brown, Primal Scream and Snow Patrol are due to perform at the three-day event.
The festival, which was launched on Glasgow Green in 2017 and has a capacity of around 50,000, has already sold tens of thousands of tickets.
The green light for TRNSMT has come at a time when festivals in England, including Kendal, Black Deer and Beyond the Woods, are being cancelled after Prime Minister Boris Johnson delayed the planned lifting of all restrictions at the end of this month.
Ms Sturgeon’s announcement in the Scottish Parliament was a huge boost to the live events industry in Scotland which is still largely in lockdown after 15 months due to the imposition of much tighter reopening restrictions on the industry than other sectors such as hospitality.
However under the First Minster’s new timetable for easing restrictions indoor venues would be able to open at one metre distancing – the same as cafes, bars and restaurants from 19 July, when it is hoped that distancing restrictions for outdoor events will be lifted.
Crowd limits for indoor and outdoor events are due to be lifted on 9 July, along with distancing restrictions indoors.
However the final decisions will on whether to go ahead with the easing of restrictions will not be taken until the week before the two crucial dates.
DF Concerts chief executive Geoff Ellis, one of the most outspoken event industry critics of the Scottish Government, said: “It is apparent that our date for the viable re-opening of live entertainment without restrictions on capacity or physical distancing is August 9 and that this will be indoors and outdoors.
"It’s great news for TRNSMT and for all the concerts we have from then onwards.
"It will be so exciting to see thousands of fans back having fun, sharing experiences and listening to some great music at TRNSMT in September.
“I expect there now to be a big rush on tickets for all events this side of the year end now that fans have that reassurance that, all going to plan with the vaccine, concerts, theatre, comedy, music festivals and nightclubs are back.
A spokeswoman for TRNSMT said: “Following the announcement by the First Minister, we can’t wait to welcome fans back to the festival in September to experience a weekend of the best live music, food and drink the city has to offer.
"We are committed to following government and local council guidance which may be in place at the time of the event to ensure the safety of all festival goers, artists and staff.
"We have hygiene measures in place as standard and these will be increased to the appropriate requirements in response to conditions in September.
"The return of one of the biggest events in the UK’s festival calendar will provide fans with a weekend of incredible music to see out Scotland’s summer in style”