Acting on behalf of Preston College, DTZ has been granted outline planning permission for the redevelopment of Park Campus, south of the city's Moor Park.
The permission allows the existing buildings to be demolished and 30, three- and four-bedroom houses to be built on site. The development was designed by Taylor Young.
Preston College will now market the site for sale to a house builder, with the proceeds of the sale being used to support the college's modernisation plans.
John Brooks, DTZ's director of town planning, said: "Preston College has worked very closely with Preston City Council to come up with a scheme for the Park Campus site that achieved almost unanimous support from the council's planning committee. The planning permission will allow a vacant, brownfield site to be redeveloped to provide much-needed family housing."
Janet Hewitt, Preston College's head of facilities management and director of capital projects, added: "Receiving this permission is an important step forward for the college. The funds raised from the sale of the Park Campus will all be re-invested in our facilities at Fulwood Campus and will help to deliver better education and training for our students and stakeholders."