Benny (L) and Bjorn of the legendary Swedish pop band ABBA
"'ABBA the Museum' will be a modern museum filled with ABBA's music, orginal clothes, history, images, instruments and much more that captures the group's heyday in the 70's and 80's," project organisers said in a statement.
"It will also be an interactive experience where visitors can participate with all their senses," the statement added.
The couple behind the project, Ewa Wigenheim-Westman and Ulf Westman, got the idea after visiting the Beatles museum in Liverpool.
The pair are now searching for premises for the ABBA project in central Stockholm. No date was given for the museum's opening, although organisers hoped the museum would open in 2008.
After initial reluctance all four members of the Swedish super group gave their backing to the project.
"ABBA has approved the project and will make material available to the museum, but is otherwise not involved," organisers said.
"We have a lot of confidence in Ewa and Ulf and we hope and believe that it will be a fun and groovy museum to visit," the four ABBA members, Bjoern Ulvaeus, Benny Andersson, Agnetha Faeltskog and Anni-Frid Reuss, said in a joint statement.
Despite having broken up a quarter of a century ago, the group still sells some two million albums a year. To date they have sold 370 million records, with only Elvis Presley and the Beatles selling more, organisers said.