The scheme from Surrey-based Stonegate Developments, owned by directors of Citygrove, will see the £30m landmark building constructed on the site of a derelict warehouse in Rutherford Street.
Designed by FaulknerBrowns architects, the Rutherford Living building will provide 162 flats with associated landscaping and highways works.
Private rented schemes, which have taken off in London and Manchester, are still a relatively new concept for Newcastle.
Up to 150 direct construction jobs and 227 indirect supply chain jobs are expected to be created during construction.
The site sits within a quarter of the city which is undergoing significant change, with developments at Science Central, Downing Plaza and Gallowgate promising to alter the scale of the area of Newcastle over the next 10-15 years.
There are already 10 proposed or consented 30m-plus tall buildings within a 400m radius of the Rutherford Street site.