Aberdeen City and Shire Economic Future (ACSEF) has unveiled its vision for the development of a Scottish Guggenheim as part of a £140m scheme to transform Aberdeen city centre.

The public/private sector body revealed it aims to secure "a major national gallery or museum" as part of the City Square Project, which is set to be the subject of design contest if plans are supported by a public consultation. A new city square with gardens is at the heart of the ACSEF-led proposals, which will reclaim 5 acres (22 hectares) of land by raising Union Terrace Gardens and covering the Denburn dual carriageway.

A cultural hub, water features recognising the importance of Aberdeen as a major North Sea port, an outdoor performance stage and amphitheatre and green space are earmarked as part of the development. ACSEF's Dave Blackwood said: "There is no reason why Aberdeen cannot aspire to securing a major arts brand and establishing our own Guggenheim - a gallery and museum which has led the transformation of Bilbao.

"The regeneration of Dundee's waterfront has helped it secure the V&A museum and our aspirations should be to attract major national arts and culture facilities." Businessman Sir Ian Wood has pledged £50m towards the £140m project to help lever in additional private sector investment, while the public sector is expected to provide £70m.

The eight-week public consultation into the proposals was launched on 11 January.