The $230 million attraction, to be called the New York Wheel, is to grace a spot overlooking the Statue of Liberty, New York Harbor and the downtown Manhattan skyline.
Officials hope the views will add to the appeal of what they say would be the world's tallest Ferris wheel.
The 625-foot-tall structure would swing higher than the Singapore Flyer, the London Eye, and a "High Roller" wheel planned in Las Vegas.
Mayor Michael Bloomberg said in a release Thursday that "The New York Wheel will be an attraction unlike any other in New York City - even unlike any other on the planet."
(Copyright 2012 by The Associated Press. All Rights Reserved.)