A MASTERPLAN to regenerate the centre of Aberdeen has been given the go-ahead.

Councillors unanimously approved the project which could create 5,500 jobs and an extra £280 million in income a year.

The 20-year plan includes the pedestrianisation of Union Street and the expansion of Union Terrace Gardens.

The Castlegate would become the city's civic heart, including a new square, and the Trinity and St Nicholas Centres would be revamped.

Council leader Jenny Laing described it as a "once in a generation opportunity".

In drafting the 95-page masterplan, which includes a range of proposals for housing, transport and urban regeneration, consultants BDP examined work in 10 peer cities, including Glasgow, for "take-aways" - lessons to be learned, useful ideas and guidance for use in the Granite City.

It thought that Glasgow's approach to economic and riverfront regeneration provided "a strong means of comparison for Aberdeen".

"The city's previously industrial focused economy and attempts to attract new employers could assist Aberdeen in attempts to diversify its own economy," it said.

BDP also pointed to Glasgow's "use of mega events and attractions" - including the Commonwealth Games - to win government cash for the 2003 Clyde Waterfront Regeneration.

An Aberdeen office development project is being inspired by the Glasgow International Financial Services District, the city centre office and residential quarter next to the River Clyde.

Plans for Aberdeen's Union Street take some tips from Glasgow's Merchant City, by encouraging high-end designer shops.

The Labour-led council administration promised to produce proposals to transform the city after rejecting oil tycoon Sir Ian Wood's controversial bid to redevelop the city's Victorian Union Terrace Gardens in 2012.

Francis Glare, of BDP, told councillors that all city centres were responding to the challenges of competing for investment.

He said Aberdeen needed a city centre for a "global city".

Mr Glare said 85 per cent of respondents wanted more space for people in Aberdeen city centre.

He said that Union Street could become "elegant" and attract new business.

He said the "spectacle" of the working Aberdeen harbour should be opened up, describing it as "relatively unique" compared to some other cities, and a "very attractive feature".

Jenny Laing, leader of the council's Labour group, said approving the plans was the "most important" decision she has made as council leader.

"These proposals once delivered will have a significant and positive impact on our city," she said.

"We now have to focus on the delivery programme for each of the projects and of course we will need to work with all our partners to secure the funding necessary to change our city for the better and to help build a city that attracts visitors and investors from across the globe."

The council's Conservative group leader Ross Thomson stressed the need to ensure that city centre regeneration is "not just talked about but actually delivered".

SNP Group leader Jackie Dunbar said the public consultation identified that the public were "hungry for change" and added: "There is still a great deal to do and each project still needs to be discussed further on its individual merits."

Liberal Democrat group leader Ian Yuill said: "The proposals will deliver positive benefits accessible to residents across the city and include more and improved public space from Union Street to Castlegate to Union Terrace Gardens."

The project will also see improvements made to the railway station area to make it more attractive for visitors and a new pedestrian bridge built over the River Dee to encourage more walking.

Architects plan to turn the city into the 'Light of the North' by using lighting to beam on to special buildings which will bring the Granite City to life as daylight fades.

The masterplan also aims to improve access to the city and partly pedestrianise Union Street, the main street for shopping.

It is hoped this will help the environment by improving the air quality and noise levels around green space sites.

A group will now be formed to bring together citizen, public sector, business, academic and funder representatives and a report will be compiled for a further council meeting in August.