RUSKIN College has agreed to sell its headquarters in Jericho to Exeter College for £12m.

Ruskin took the controversial decision to sell its home in Walton Street in order to fund a £20m redevelopment of its campus in Headington over the next three years. Some students and staff had protested about plans to sell the building where Ruskin has been based since 1903.

The college plans a staged transfer of activities to its Headington campus over the next three years.

As part of the deal with Exeter, Ruskin will retain a presence in Walton Street, leasing back a small part of the building to continue its outreach and educational work in central Oxford.

Exeter will then undertake a programme of refurbishment at Walton Street that will protect the Ruskin frontage and create teaching and research space and student rooms.

Professor Audrey Mullender, principal of Ruskin College, said: "It offers us the opportunity to develop our extensive site in Headington into a modern and purpose-built campus, while preserving outreach and courses in central Oxford."

Ruskin hopes the terms of the agreement will go some way towards deflecting criticism that the move would result in Ruskin severing its close links with Oxford colleges. As part of the deal, Ruskin and Exeter are to develop a programme of joint academic, cultural and social activities involving students and staff.

Frances Cairncross, rector of Exeter College said: "Not only does it dramatically increase our space for students and academics in central Oxford, allowing us to break the constraint of our small site in Turl Street, but it also gives us the opportunity to work with one of the pioneers of adult education. We are keen to improve our accessibility, especially to students of different social and ethnic backgrounds, and believe that Ruskin College has much to teach us."

Ruskin College is an independent college that specialises in educational opportunities for adults with few or no qualifications. Founded in 1899 to provide educational opportunities for working class people, it still seeks to offer adults a 'second chance' in education. Its most famous alumnus is former Deputy Prime Minister John Prescott.

Prof Mullender said the decision was taken to sell Walton Street because the college's two sites duplicated many functions.

The multi-million-pound scheme to transform its 20-acre campus in Old Headington will see a new library created and named in honour of former Prime Minister Jim Callaghan.

Exeter College is the fourth oldest in Oxford. It has been in Turl Street since 1315.