The singer will get honorary citizenship of Manchester after organising the One Love charity concert which raised money for the victims of last month’s terror attack in the city.
The city council is putting together a proposal which will reward those who have made outstanding contributions to Manchester, with Grande being the first recipient.
Council leader Sir Richard Leese told the BBC: “This seems a fitting moment to update the way we recognise those who make noteworthy contributions to the life and success of our city.
“We’ve all had cause to be incredibly proud of Manchester and the resilient and compassionate way in which the city, and all those associated with it, have responded to the terrible events of 22 May – with love and courage rather than hatred and fear.”
There are also plans for an event to recognise those who acted selflessly in the aftermath of the incident. Proposals will be put before the full council by July 12.
A petition was set up last week calling for Ariana to be honoured for her role in raising money for the victims.
The singer raised millions of pounds through her charity gig, and paid tribute to the 22 victims killed outside her concert.
Joined by fellow stars including Justin Bieber, Katy Perry and Miley Cyrus, Ariana told the crowd of 50,000 fans to not be cowed by the terror attack, and instead to choose love.
A Manchester City Council spokesman said: “We are grateful to Ariana Grande for her tremendous support for the city in the aftermath of the Manchester Arena attack.
"There are thousands of people who have made a significant contribution in the past two weeks, including our emergency services and hospital staff, and the city will want to find a suitable way of recognising them all in due course."
Ariana has even embraced the symbol of Manchester - a worker bee - by having the motif tattooed on her body after her concert.
She took time out to visit her fans in hospital who had been injured in the terror attack outside the Manchester Arena during her time in the UK.