
A new body to oversee Welsh-medium higher education should be created by September 2010, says a report.
The federal college would not award degrees or appoint teaching staff of its own, but work with existing higher education institutions.
If the report - written by Prof Robin Williams for the assembly government - is implemented, 200 new posts would be created over 10 years.
The assembly government said it "warmly welcomed" the report.
The mission of the federal college, or Coleg Ffederal, would be to maintain, develop and oversee Welsh-medium provision in higher education in Wales.
Staff and students who take part in Welsh-medium teaching and learning could be members of the college, which would be run by an executive.
The report said it should be seen as supporting the higher education institutions and not competing with them for funding.
'Warmly welcomed'
It recommends creating the college by September 2010, with the new body fully operational by September 2011.
The report also advocates the creation of 200 new posts over the next 10 years, costing an extra £6.1m per year above existing funding levels.
An assembly government spokesperson said: "The minister has received and warmly welcomed Professor Robin Williams's report on the proposed model for a Coleg Ffederal.
"The government will now consider the detailed report and respond in due course."
Plaid Cymru education spokesperson Nerys Evans has called on the Wales' Education Minister Jane Hutt to confirm that the assembly government will act on the recommendations.
"Their report should now make it a certainty that the Coleg is established," she added.
Welsh workforce
"I have asked the education minister to confirm that this work, as recommended by the planning board, will become a reality at the earliest possible opportunity.
"We need to know that sufficient money will be made available to establish the Coleg Ffederal, and that work can begin for it to be fully operational by September 2011."
Rhys Llwyd of Welsh language society Cymdeithas yr Iaith Gymraeg said: "It's definitely a step forward.
"There are a few issues regarding finances - the report is clear it would cost quite a bit.
"But it's an investment I would hope that the government would invest in. It won't be money spent on the language, it would be money spent on the Welsh workforce."
RELATED INTERNET LINKS
Welsh Assembly Government
Full report on Coleg Ffederal
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