Oxford City Council says it is the first council in England and Wales to launch proposals for a commercial-scale wind turbine on its land.
The council has picked out a potential site and it is hoped a planning application will be submitted by 2011.
Before that happens, a test mast will be erected on the site near the Horspath Road Athletics Track to determine whether there is enough wind in the area.
Partnerships for Renewables, which was established in by the Carbon Trust in 2006, will carry out the project and the company will also cover the costs of the development.
Councillor John Tanner said: “Wind turbines are a beautiful way of helping to tackle climate change with renewable energy.
“This Horspath site is a first for Oxford and a practical contribution to creating a low carbon city.”
Green campaigners hope the move will act as a beacon for other local authorities to follow.
Martin Kirk, head of Oxfam’s UK Campaigns, said: “We are proud of our close links to Oxford and it is fitting that the city is now leading the way in developing practical solutions to the most serious of threats - climate change.”