Witney's new college campus has attracted one of the highest ever funding grants from the Government.
Main building work is expected to start before Christmas this year, with completion of the site by early 2011.
The Learning and Skills Council (LSC) is bearing 87 per cent of the redevelopment cost of the town centre site, a total of £30.5m.
The remaining 13 per cent will come through bank loans repayable from the college's income.
Principal Teresa Kelly said usually the LSC would fund about 40 per cent of such projects.
She added: "We're absolutely delighted. They obviously have huge confidence in us. They see Witney as a growing town in a growing district with a growing student population."
The campus is part of Abingdon and Witney College, formed from a merger in 2001.
A planning application has been submitted to West Oxfordshire District Council with a decision expected over the next two to three months.
But because there has been lengthy dialogue between the college and council officers, no significant hitches are thought likely.
The college has also held consultations with students, businesses and residents.
When planning consent has been gained, the redundant Welch Way ambulance station, already purchased by the college, will be bulldozed to open up a walkway into the campus.
The work will be achieved in two phases, with a final landscaping, but students will continue to use the campus, mainly in temporary buildings.
The builder, subject to college board approval, will be Abingdon-based Leadbitter, chosen because of its local contacts and previous experience of working in cramped sites.
Ms Kelly added: "It is going to be excellent for Witney, the college and the district."
She added the college would ensure any disruption was kept to a minimum.
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