The green light has been awarded to the latest expansion of the Innovation Birmingham Campus next to Aston University.
Called the Universities Centre, the building will be based on the car park in front of Faraday Wharf and provide 5,812 sq ft of commercial space for flexible co-working, training sessions and events.
Its main purpose will be to make it easier for SMEs to engage with Birmingham's five universities.
It will have state-of-the-art communications equipment and all five universities in Birmingham will have a high-definition video conferencing suite installed as part of the project.
Construction work is expected to begin soon with occupation due in September.
The first phase of the campus redevelopment, the £8 million iCentrum building, is nearing completion and is due to open in March.
Architecture firm AHR designed the Universities Centre which has been backed by the Greater Birmingham & Solihull Local Enterprise Partnership which has awarded £2.49 million from the Local Growth Fund.
Innovation Birmingham's chief executive David Hardman said: "The Universities Centre is the second phase of a planned £40 million expansion of the campus.
"The building has been purpose designed by AHR to stimulate far greater interaction between Birmingham's five universities and the city region's burgeoning community of start-ups and SMEs.
"There will be a full programme of activity that is delivered from this new facility as soon as it opens in September, which will contribute to Birmingham’s Smart City agenda."