A £4.2m lottery grant has secured the restoration of Derby's historic Roundhouse project.
The Roundhouse is expected to open in 2009
Derby College wants to alter the grade II and grade II* listed buildings on the Pride Park site to form the hub of a new campus.
The Heritage Lottery Fund awarded the grant to the project, completing the funding for the £36m development.
The Roundhouse is the world's oldest steam engine workshop, but it has remained unused for many years.
As well as being the college's flagship site, the Roundhouse will also have a visitor centre.
Derby College principal David Croll said: "It's location, combined with the excellent transport links connecting Derby with neighbouring cities, means that quality education and training will be more accessible.
"This will ultimately bring more skills to the city which will play a key role on the economic growth of Derby."
Built in 1839, the Roundhouse could accommodate up to 32 engines. A central turntable was used to move them around.
Previous schemes have been proposed, including one by record producer Pete Waterman who wanted to store his collection of locomotives there.
That fell through, according to Mr Waterman, because of a lack of support.
The college expects the site to be open to students by January 2009.