A 625-foot Ferris wheel, billed as the world's largest, is planned as part of a retail and hotel complex along the Staten Island waterfront.
The announcement is being made Thursday by Mayor Michael Bloomberg.
The Staten Island Advance says the attraction, called the New York Wheel, will cost $230 million. Officials say the observation wheel will be higher than the Singapore Flyer, the London Eye, and a "High Roller" wheel planned in Las Vegas.
Construction is expected to begin in early 2014. The grand opening could come by the end of 2015.
It's predicted that the project will bring $500 million in private investment to the borough's St. George waterfront.
Starneth, the engineering company that built the London Eye, will design and manufacture the New York Wheel.