A plot of land measuring around 1.25 acres at Balewadi has been set aside for the project. Besides that, Rs 40 crore has been earmarked for the project.
"The proposal will go through various committees of PMC before we forward it to the state government," said PMC mayor Mohansingh Rajpal.
The proposal was put forth by Nationalist Congress Party (NCP) members Shreekant Patil and Baburao Chandere.
He estimated that after completing all the formalities, the PMC is likely to make the allotment within a couple of months.
Patil said the proposal was unanimously accepted.
"It will be an honour to have Sachin Tendulkar's museum in Pune. We are confident it would become a major tourist attraction," Patil said.
The museum will detail Tendulkar's rise to stardom in international cricket.
The museum was initially supposed to be set up in Mumbai but, due to lack of space in the country's financial capital, it has been shifted to Pune.
The standing committee of the PMC also has plans to felicitate the Indian cricket team for its World Cup triumph.