A site for the memorial to Wood, who died in April at the age of 62, has been chosen in Bury, Lancashire.
Her brother Chris Foote Wood has launched an online appeal to help pay for the statue.
He met council bosses to discuss plans for the memorial, which will be located in Library Gardens in the Bury town centre.
Mr Foote Wood plans raise the £20,000 to build the tribute of his sister.
“I thought since she died I would like something permanent for her,” he said.
“I class myself as one of her biggest fans, I’m in awe of her achievement.”
He said fans will be able to choose the statue from a number of designs, with suggestions ranging from Wood sitting at the piano performing Let’s Do it, to ‘Kimberley’s friend’ in a beret and raincoat or her character, Bren, from Dinnerladies.
Chris Foote Wood with Bury Council Leader Rishi Shori
Mr Foote Wood said he was “astonished” by the public’s reaction to her death, saying: “I knew she was well liked but I had no idea how much.
“I didn’t realise people who first saw her 30 or 40 years ago would still be singing her praises now.”
Mr Foote Wood added he hoped fans would come and see the statue and would enjoy posing for selfies with it as they do with fellow Lancastrian comedian Eric Morecambe’s seafront statue in the town from where he took his name.
While the council will not pay for the sculpture itself, it will help with its upkeep.
Bury Council leader Rishi Shori said: “Victoria was a national treasure and a major talent in a variety of areas – actor, writer, comedian and singer-songwriter.
“We feel it’s only right that there should be a fitting tribute to her in the borough in which she was born.”
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