York College has been given the go-ahead to build a new £50m campus.
The new college should be open in September 2007
Concerns were raised about the impact that the development on Sim Balk Lane could have on traffic in nearby Tadcaster Road.
But members of Thursday's council planning meeting said they felt the potential problems had been addressed.
The college hopes to sell its Tadcaster Road site to a housing developer to raise the funding needed to turn the project into a reality.
The new college will cover an area of 29,150 square metres and house education and nursery facilities.
York College principal Mike Galloway said his team was
delighted with the planning committee's support.
"We are confident that the £50 million scheme we have put forward will bring major benefits to learners across the region," he said.
"But this is only the first stage in the process. It is essential that we now secure planning approval for our outline proposal for a housing development on our Tadcaster Road site."
The Learning and Skills Council has already promised some funding for the new college but Mr Galloway will not know the results of the application for the Tadcaster Road campus until next month.
"York desperately needs brownfield land for housing development. Releasing the Tadcaster Road site will help to meet the city's housing need and safeguard precious green belt land," he said.