The Buchanan Quarter is also expected to bring in £310 million in private investment and create almost 1,500 jobs.
Deputy First Minister Nicola Sturgeon said: "Big building projects like Buchanan Quarter are not just about the improved infrastructure we gain at the end, they are about the employment and the training that takes place during construction.
"This development will continue the regeneration of the city centre, improving the public spaces and creating modern, vibrant new facilities that will cement Glasgow's position as a major international destination for visitors.
"The Scottish Government will use every lever at our disposal, within our devolved powers, to boost capital spending and, through innovative financing schemes such as TIF, help the Scottish economy."
Liz Cameron, executive member for jobs and the economy at Glasgow City Council, said: "The Buchanan Quarter project will continue the regeneration of Glasgow and help the city centre retain its position as the biggest shopping destination in the UK outside of London. The delivery of the project will bring a massive economic and jobs boost, and make our city centre even more attractive to shoppers and visitors."