The branding change approved yesterday will be the first major logo alteration in the university’s 154-year history.
However, it was pared back from an initial proposal released earlier this year.
Mr Higgs said there had been "robust debate" by the council, including around costs, and the decision was in the best interests of the university.
"We believe the new brand reflects the shared view of council, and the vast majority of our community, of the importance of our relationship with mana whenua and our goal to be Te Tiriti-led."
Changing the institution’s te reo Māori name from Te Whare Wānanga o Otāgo, to Ōtākou Whakaihu Waka (a metaphor meaning A Place of Many Firsts) was also endorsed.
Mr Higgs said almost three-quarters of those surveyed by the university supported the proposed rebrand as reflecting the university’s future direction, and more than two-thirds supported both the English and te reo Māori versions.
"We have listened to the submissions from that consultation — there is strong support for this change," he said.Statistics contained in a consultation report released yesterday showed some division in responses.
The university is seeking to cut spending by $60 million, and yet 51% of respondents felt now was the right time to make the change, with 36% disagreeing and 11% neutral.
Asked to assess the design of the new logo on three design principles, 52% agreed it reflected "whakapapa", 54% agreed it was "iconic" and 60% said it was "practical".
Respondents were also given the chance to leave comments, and many did so.
Many supported the change to te reo Māori, but the most commented-on topic was the tohu and the majority of the feedback was negative, the report said.
"A number of comments compared the tohu to other objects and other logos such as Otago Rugby, bananas and Whittaker’s chocolate."
Many also felt the coat of arms was recognised internationally as a symbol of academic excellence.
The present coat of arms was originally proposed to be used only in ceremonial settings, but the university said yesterday it would continue to be used in "a range of applications".
A stylised version of the coat of arms would be used for international marketing and communications with alumni.
The university would introduce the changes from next May.
It would be spread over 12 months and two financial years at a cost of $1.3 million, the university said.
Before the decision was announced, former Dunedin mayor Aaron Hawkins said on Twitter the decision for the university was "whether to back their work with mana whenua, or buckle to the pressure of white supremacy".
During the meeting iwi representative to council Suzanne Ellison said she now felt more confident of the relationship between mana whenua and the university.
"I think we have landed in a really good place."
Otago University Students’ Association president Quintin Jane said the change "set the right tone" and was what students wanted.