Darlington College of Technology has unveiled plans to move to a modern complex in a multi-million pound deal.
The college, which has 15,000 full and part-time students from across the region and employs 500 staff, is planning to spend £27m on a new site on the outskirts of the town.
The new complex - representing the largest single investment in post-16 education ever seen in the town - is scheduled to open in August 2005.
The college's site at Cleveland Avenue, where there has been an educational establishment for more than 100 years, will be sold to help fund the move, as well as sports facilities at Larchfield Street.
The Northern Echo understands that the preferred site for the new college is the Darlington base for engineering firm Torringtons, in Yarm Road.
It is believed that development agency One NorthEast has been involved in negotiations over the site, with a view to Torringtons, which employs more than 100 people, moving to a smaller base elsewhere.
A planning application was submitted to Darlington Borough Council yesterday to dispose of the college site and to buy the preferred new site.
Yesterday, the college, which has a turnover of £17m a year, admitted that due to an administrative oversight, the Cleveland Avenue site had already been advertised for sale, potentially for residential development.
Principal and chief executive of the college Sarah Farley said: "The vision is not simply to replace classrooms with learning centres on a new site.
"We want to go further than that and create a learning park. This will be a campus which will accommodate a whole range of centres run in partnership with local organisations."
The decision was taken to move the college because it would have cost too much and taken too long to develop the existing site.
It was also thought that the collection of buildings at Cleveland Avenue would not be able to cope with the planned expansion of courses and facilities at the college.
Mrs Farley said: "Our strategy must adapt to increase provision for basic skills, coping with the 14 to 16 provision and the increase in recruitment of post-16s, as well as providing a comprehensive inclusive learning environment - learning that everyone can access.
"Alongside that we have to make sure that the quality of student experience and the working conditions for staff and students suffer minimal disruption during the implementation of the project.
"It is a huge undertaking but we have considered all the options carefully and know it is the best solution for our students, our staff and for the town."
The plans include a university centre which will be run in partnership with the University of Teesside and Queen Elizabeth Sixth Form College to deliver higher education courses.
There will also be a specially-built football development centre, a centre for young people, a hair and beauty salon and a technology centre.
Alasdair MacConachie, chairman of both Darlington Partnership and the board at the college, welcomed the news.
He said: "This will bring the college into the 21st Century and will enable it to provide more courses and to expand into areas that we can not provide at the moment, such as higher education.
"The college will hopefully be moving to a growing part of the town which is excellent news."
A Darlington Borough Council spokesman said: "Education is a priority for Darlington and we welcome the college's application."
Councillor Tony Richmond, who represents the College ward on Darlington council, said: "Parking for the college creates a lot of problems for residents. and if the college is planning to expand it needs to move site."
Next month, members of the public will be asked for their opinion on proposals for the new college site.
A number of consultation days will be held for residents to look at the plans, to talk to college officials and give their views.
The college also has a centre at Linear Park, in Catterick, North Yorkshire, which opened three years ago.
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