The 6 million m2 Masdar Initiative, which is being driven by the Abu Dhabi Future Energy Company (ADFEC), will be completely car free and will house a population estimated to number 50,000 - most of whom will work for ADFEC.
As well as a new university and an HQ for ADFEC, the city will also include a 'centre for the development of new ideas for energy production' and monorails which Foster described as a 'personalised rapid transport system'.
Foster said: 'The environmental ambitions of the Masdar Initiative - zero carbon and waste free - are a world first. They have provided us with a challenging design brief that promises to question conventional urban wisdom at a fundamental level.
'Masdar promises to set new benchmarks for the sustainable city of the future,' he added.
A timetable for the city's construction is yet to be finalised.