Chancellor George Osborne announced negotiations would begin with the local authorities in his Budget statement.
If successful, it could unlock a major round of new investment.
Glasgow City Council signed a City Deal with the UK and Scottish governments last year which is expected to result in the funding of major projects.
A bid for City Deal status worth £2.9bn was officially launched by the leaders of Aberdeen and Aberdeenshire councils earlier this month.
Highland Council is preparing a bid for up to £300m of funding.
It involves a combination of government grants and borrowing powers to secure a region's economic future.
Aberdeen and Inverness could be the next two cities to benefit from City Deal status worth hundreds of millions of pounds.