Prior Pursglove 6th Form College in Guisborough, will benefit from £200,000 from the Learning and Skills Council Tees Valley.
The Further Education performance-related funding forms part of the Success for All programme of reform, recognising institutions that have demonstrated a high quality of learning and excellent performance.
The college is among 73 further education colleges and institutions in the country to receive extra funding for 2004/05.
Stephen Whitehead, principal of Prior Pursglove College, said: "To achieve this standard is a tremendous achievement for all our staff and one of which the whole college can be proud."
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