Work is due to start next month on Oldham College's redevelopment of its Rochdale Road campus following planning consent from Oldham Council.
This first phase of development is a five-storey building on the corner of Middleton Road and Rochdale Road.
Designed by Aedas, the building will house 28 classrooms, a community space, new student support facilities, and a new front entrance to the college.
The wider masterplan seeks to make better use of the site, improve facilities for teaching and learning make better connections with the town.
Principal, Alun Francis, said: "This is part of an ambitious transformation programme for the college and the town. We know that the work of the college is widely valued and that our role in the future regeneration of Oldham, through delivering high quality vocational skills, is very important. This investment, which is largely funded from our own resources, is part of a genuine commitment to raising standards and improving opportunities. The construction will be completed by early 2014, and learners across a number of courses and departments will benefit. We have also aimed to improve the built environment in the town centre, and to ensure that, given the economic situation, there are local labour benefits, including apprenticeships, work experience and a very useful onsite construction project that will give invaluable experience to many of our building services students and staff."