Grandhome Trust will now start building work on the first phase infrastructure later this year.

Planning permission in principle for the development in Bridge of Don was approved last May, pending a Section 75 agreement – which identifies the contribution sum.

Companies are expected to offer money for the local area when proposing major schemes. It is understood the Trust will contribute several millions of pounds.

The cash will go towards the development of two new primary schools and a secondary. It will also be devoted to the creation of community facilities, a library, playing fields and a healthcare facility.

A spokesman for the Grandhome Trust said: “We are pleased to have concluded the agreement with Aberdeen City Council.

“Grandhome will be an outstanding community in its own right and we are determined that it will contribute to the wider good of the city.

“This is an exciting time for the new community as we move towards the delivery phase and, subject to planning consents, the start of infrastructure work later this year.”

Up to 7000 homes could be built at Grandhome over 40 years. The Trust plans to submit detailed plans for the development in March.