The construction of the building in the country's second city will knock the 120 metre-tall Herlev Hospital near Copenhagen, the current owner of the title, into second place.
The building will be located in the Aarhus Ø harbour development area, which has seen a significant amount of new construction in recent years.
Given the name ‘Bugtcenteret' (The Bay Centre), the new building is expected to be finished in 2020, reports broadcaster DR.
Aarhus Municipality announced on Wednesday that it had accepted a proposal by real estate firm Anpartsselskabet Lighthouse United for the development of the site at Aarhus Ø.
“We are going to get a distinctive and attractive development at one of the country's most attractive locations, a landmark for a modern city with high ambition,” Aarhus mayor Jacob Bundsgaard told DR.
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The building will house residential apartments as well as city resources such as facilities connected to nearby open water swimming lanes, along with an open area for exhibitions and tourist information.
An observation platform will be included on the building's top storey.
“With ‘Bugtcenteret' we are again seeing that Aarhus Ø provides outstanding opportunities for architecture and urban space at where the city meets the bay,” said Bundsgaard.