The City Square Project is backed by Sir Ian Wood
A major design competition will be held for plans to build a civic square over Aberdeen's Union Terrace Gardens - if a public consultation backs it.
Aberdeen City and Shire Economic Future (Acsef) also says it wants to attract a major international gallery such as a Guggenheim to the site.
The £140m City Square proposals have a promise of £50m in funding from businessman Sir Ian Wood.
However arts organisation Peacock also has plans for a £13m centre.
Acsef, a public-private development agency, said internationally acclaimed architects would be invited to come up with designs for the City Square project.
A public consultation is being held on the plans.
Peacock Visual Arts say the two projects could co-exist.
Approval for its new centre in the gardens has already been given, but it is said to be in jeopardy due to the other scheme.
A Peacock spokesperson said: "We have consistently explained to Acsef that our funding is specifically attached to the present design.
"If we lose this there will be no new art centre and Peacock will be homeless in two years."