Planning permission was sought back in March 2018 to build eight tower blocks between four and seven storeys tall on the south side of the river near the Queen Elizabeth Bridge on South Esplanade West.

The NORR-designed plans also included the creation of a 503sq m ground-floor retail unit and a central public square between the middle blocks with 110 parking spaces and 258 cycle spaces.

Planning officers had recommended that councillors back the project on the basis developers agree to deliver affordable housing, community facilities, sports and recreation, open space and healthcare, however, the proposal was rejected on the grounds that its vision was “too dull”.

Aberdeen City Council said the harbour board’s proposals did not show enough ambition and that one of the city’s most recognisable communities deserved better.

Planning convener Marie Boulton said at the time: “I would like to see more ambition here. I think that this is frankly a bit dull. This is the gateway to Torry and I think the residents there and the development deserve a really iconic building.”

An appeal was then lodged to the Scottish Government, with government reporter Elspeth Cook indicating that she was minded to overturn the council decision in November. Ms Cook has now confirmed she will grant planning permission in principle for the scheme.

She wrote: “I conclude that the proposed development accords overall with the relevant provisions of the development plan and that there are no material considerations which would still justify refusing to grant planning permission in principle.”

Ms Cook gave port and council officials 12 weeks to hammer out an agreement on the cash settlement worth hundreds of thousands of pounds.

A deal has now been agreed, taking account of the reporter’s 25 conditions attached to the approval, including improving walking routes to schools, the production of a leaflet urging future residents to give up their cars and surveying the mission hall for historical records.

The proposals still include the riverside playpark and the university boat houses, nestled in among the flat blocks.

Aberdeen Harbour Board will still require to gain approval for detailed plans before breaking ground.

A spokeswoman said: “We believe our application to confirm the principle of residential development represents a great opportunity for the city to take a significant stride towards realising the vision for waterfront regeneration along the River Dee, on a site which is currently predominantly industrial.

“The successful appeal allows us to develop in detail a design to support the long-term transformation of the area, in line with the city centre masterplan, to promote sustainable economic growth.”