She said the referendum should be held between the fall of 2018 and the spring of 2019 because by then, details of Britain's post-Brexit deal with the European Union would be clear and Scottish voters would be able to make "an informed choice".
She went on: "I will seek the approval of the Scottish Parliament to open discussions with the United Kingdom government on the details of a Section 30 order - the procedure that will enable the Scottish Parliament to legislate for an independence referendum".
For the referendum to be binding, it also needs the approval of the Conservative government in Westminster, which would like to delay a vote on independence until after Britain leaves the EU.
Sturgeon has said she would like to hold a vote between the Autumn of 2018 and the Spring of 2019.
To remain within EU, Scotland is eager to break away from Britain, Sturgeon claimed.
The British government was quick to react by calling Sturgeon's plan for an independence referendum divisive.
"We did not choose to be in this position and I wish that we were not in this position but we are and the stakes are high".
She said the choice would be between Theresa May's Brexit deal and Scotland forging its own future with the EU.
Economic realities scupper Commonwealth Games in SA
But ever since it won the games as the sole bidder in September 2015, Durban missed deadlines to provide the financial guarantees. The 2018 games will be held in Sydney, Australia, with the countdown officially being set off today at Buckingham Palace.
"Today's announcement from the First Minister represents a broken promise to the people of Scotland when she repeatedly said the 2014 vote was a once-in-a-generation event".
Scotland's First Minister Nicola Sturgeon once again raked up the demand of Scottish independence.
"All of our efforts at compromise have been met with a brick wall of intransigence".
At a press conference on Monday, she said Scotland was at an "important cross roads", which Scotland had not chosen.
She has repeatedly warned a fresh ballot is "highly likely" after Scots voted to remain in the European Union and the United Kingdom as a whole voted to leave.
"If Scotland can be ignored on an issue as important as the European Union and the single market then it is clear that our voice can be ignored at any time and on any issue", she said.
"They don't want an argument about why there should be a referendum when the people of Scotland don't want one, and the time scale is one in which you wouldn't know what the outcome of the negotiations are".
"So I think the priority as outlined by the First Minister will be single market membership and that's obtainable through EFTA".