Redcar and Cleveland College has announced it is to invest £15m in its Teesside site.
The work will result in an almost entirely new building at the main site in Corporation Road, Redcar.
The accommodation will include facilities for visual and performing arts, hairdressing and beauty therapy, sport and recreation, computing and construction.
The library, cafeteria and student support area will also be part of the new build.
All other provisions will be delivered from existing buildings, which will also be enhanced.
A significant feature will be the addition of a sports hall and all-weather pitch.
The college has submitted a capital funding application to the Learning and Skills Council Tees Valley and will be using funds from commercial lenders and rationalisation of other assets to complete the development.
As part of the rationalisation process, the college's Connections Campus, in Redcar Lane, will be vacated and all work will be transferred to the new buildings on Corporation Road.
The college is seeking to dispose of the site and will be making a planning application for development of the site.
Commenting on the announcement, chairman of the board, Graham Hillier, said: "We have announced plans for a college that will become one of the best learning institutions in the North of England."
College principal Alan Old said: "The process is expected to take 30 months to complete but once finished, Redcar and Cleveland will have 21st Century college facilities."
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