Councillors threw their unanimous support behind the Venn Property Group (VPG) concept last week, which would close Rokeby Road between Bagot Road and Hay Street to traffic every weekend to make way for 200 tented market stalls.
VPG directors Evan Briers and Hadley Missell said they hoped to launch the market this spring.
"Now we have a green light from the City, we are hoping to lodge a licence application with Main Roads WA and get approval as soon as possible," Mr Missell said.
Get in front of tomorrow's news for FREE
Journalism for the curious Australian across politics, business, culture and opinion.
READ NOW"Most of all, we are really looking forward to stimulating retail on the road.
"Support from 55 local businesses was the result of a lot of hard work and consultation with retailers. It is very important to us that they feel a part of it."
Mr Briers said he hoped Markets on Rokeby would become an "iconic centrepiece for Perth".
At the council meeting, Table Culture owner Emma McCarthy said Markets on Rokeby had the potential to help recreate Subiaco as a destination and "reclaim its mantle" as a premier shopping destination.
"These markets will become part of the fabric of Subiaco and add a rich layer to its history," Ms McCarthy said.
Brew-Ha cafe co-owner Grant Johnston said he was already in talks with VPG about opening a coffee stall there.
"This is an opportunity for businesses to bring increased foot traffic to Subiaco," Mr Johnston said.