Plans for a multi-million pound teaching centre at Derby's historic Roundhouse site are being drawn up
The development will cost up to £28m, with three teaching colleges covering construction, engineering and Information Technology.
Ray Cowlishaw, chief executive of Derby City Council, said discussions had taken place with funding bodies.
He said while no firm cash sources were in place, groups had been "very supportive" during discussions.
The development would form part of a central campus for Derby College.
Mr Cowlishaw said: "While nobody will hand you something on a phone call or conservation, the fact of the matter is organisations we have talking to are very supportive of the project."