Haji Ibrahim Nehramli, president of the Avesta Group of Companies, says the new building will be a whopping 1,050 m high with 189 floors.
The Azerbaijan Tower will be 200 m higher than the world's current tallest building - Burj Khalifa, and 50 m higher than the Kingdom Tower to be built in Jeddah, Saudi Arabia.
The Avesta management originally planned to build a 560-m tower, but revised their plans, APA reported.
Avesta says it has already held talks with the companies that built Burj Khalifa.
The Khazar Islands are a development of artificial islands to be constructed in the Caspian Sea off Garadag, southwest of Baku.
The Avesta Group told Gun.Az that the first phase of the islands project will include residential and social facilities and restaurants and will be completed in 2016.
The Azerbaijan Tower will be built as part of the second phase. Construction is expected to begin in 2016 and finish in 2018-19.