North West Regional College (NWRC) has announced a £7m revamp of its Springtown campus in Londonderry.
The Department for the Economy is providing the funding for the redevelopment.
NWRC principal and chief executive Leo Murphy said the news was a boost for the city and the wider north-west.
"This is a positive and welcome result for the development of industrial apprenticeships in the college, city and region.
"If we are to realise our economic potential in this region, as well as becoming a university city, we need to become an apprenticeship city.
"This substantial investment and support from the Department for the Economy can allow us to make this happen for our young people and adults and bring the campus space into a new era.
"This redevelopment work reflects the value of training and apprenticeships in the north-west and the importance of working with industry to secure relevant training."
Beverley Harrison, director of further education at the Department for the Economy, said the funding reflected the department's commitment to enhancing education, skills and employability.
She added: "This funding will enable the college to tender for the redevelopment of Springtown campus and ultimately provide students and staff with access to a modern, state of the art, learning environment."
Springtown campus was one of five opened in the city during the 1970s.