The Black Country University Technical College (BCUTC) has been backed by the Department for Education (DfE) to relocate to state-of-the-art facilities next to Walsall College.
The college's board of directors has identified a building off Portland Street for refurbishment and expansion as a specialist science and engineering centre for the region's 14 to 19 year olds.
It will be situated just yards from Walsall College's £64 million Wisemore Campus and the £11 million Business and Sports Hub due to open in September 2015.
Established in 2011, the BCUTC's move to a central Walsall location will increase accessibility for students as well as improve recruitment opportunities.
It will continue to operate as normal until the move when 300 students will transfer to the new campus from April 2016.
The building currently lies redundant and work is underway to develop the proposals with a planning application to be submitted to Walsall Council once preparation work has been completed.
It will further boost the region's capability to meet the skills gap in engineering, as Walsall College creates a new £300,000 engineering manufacturing workshop at its nearby Green Lane campus, offering specialist provision in science, technology, engineering and maths.
Henriette Harnisch, chairman of the governors at the BCUTC, said: "The Black Country UTC has seen some real successes with many of our students going on to university or securing prestigious apprenticeships with our employer sponsors.
"Unfortunately, however, the present site has often proved challenging for recruitment due to its location and restricted public transport links which is why we've taken decisive action to relocate to the centre of Walsall and further establish ourselves in the Black Country.
"This new state-of-the-art college will provide a number of major benefits for current and future students and we're delighted that the Department for Education has backed our proposals with capital funds."
Jatinder Sharma, principal and chief executive of Walsall College, said: "Engineering and science is a priority sector for the Black Country, the birthplace of engineering, and that is why we are fully committed to supporting the relocation of the BCUTC as well as advancing our own exciting plans for an engineering manufacturing workshop, focusing on science and engineering."
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