Plans for a £17.3m college building have been approved by councillors.
Proposals to replace the 1958-built Bishop Auckland College with a three-storey building now need grant support from the Learning and Skills Council, which could be confirmed this week.
Work could start early next year with completion planned for spring 2007.
People in the Woodhouse Lane area have been consulted about the development.
Joanne Tait, college principal and chief executive, said: "This new college will take us all well into the 21st Century and continue to provide excellent learning opportunities for young people and adults, with significant improvements to services and facilities."
The college has 14,000 full and part-time students and 560 members of staff.
Councillor Neil Stonehouse, leader of Wear Valley District Council, told development control committee members: "This development is to be welcomed.
"The building is long overdue for a makeover."
Some members were concerned about a plan to reduce car parking on the college's 12 acre site from 450 spaces to 300, with a green transport plan outlining opportunities for public transport, cycle and pedestrian access.
Councillor Derek Jago, who voted against the plan because of the reduced parking, said: "The college is on the outskirts of town and people will drive there.
"It will drive parking onto the streets and we have to consider the people who live in the area."
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