A £70 million college revamp could turn Worthing into a centre of learning and stop students moving to rival towns.
Northbrook College of further education, and Worthing College, which caters for sixth formers, have joined forces to plan new facilities.
Northbrook,which is spread across three sites around Worthing, wants to build a new college on its ageing Broadwater Road campus, with work starting next year.
Worthing proposes to construct modern facilities on its existing Bolsover Road site, with five acres given up for housing to help pay for the scheme.
Previous plans to construct an Asda supermarket on the land, with proceeds funding an upgraded college, were thrown out after a public inquiry.
The new schemes, which have been welcomed by politicians, must first be granted planning permission.
Northbrook hopes to raise cash for Broadwater Road by selling its Union Place art college in the town centre to retirement homes developer McCarthy and Stone.
It could also vacate its West Durrington campus, a prime site for housing and therefore worth multi-millions of pounds.
More cash could be obtained from Government funding via the Learning and Skills Council.
The college principals said they were working closer together but it wasn't a merger.
David Percival, principal of Northbrook said: "We want the best for Worthing. This marks the end of outmoded buildings."
Peter Corrigan, principal of Worthing said: "Over 18 months of meticulous planning between the colleges has led to one of the most ambitious visions for education ever seen in the area.
"It will lead to better curriculum options in truly 21st century environments, with facilities and resources that we can all be proud of."
But first Mr Corrigan must win over residents in the Field Place area who mounted a fierce and sometimes bitter campaign against an Asda store.
Some of the protesters said they would prefer to see housing on the site, which is what the college is now tabling.
Both colleges have been concerned by a slow drift of students to other educational centres such as Brighton and Chichester which offered better facilities.
It was hoped the revamp would persuade teenagers to leave the sixth form and go to Northbrook instead of quitting the town to pursue further education Worthing West MP Peter Bottomley said: "Worthing has a proud history of educational achievement. It will be a matter of pride when students do not have to leave the town to meet their educational and career aspirations.
"These plans should enable greater retention of talent. This will be a major coup for the town. Itís good for Worthing to be at the forefront of something new and exciting."
David Smith, area director of the Learning and Skills Council in Sussex, said: "The principals of both colleges are to be congratulated for their far-sighted commitment to an educational environment in Worthing which works collaboratively for the greater benefit of the student population.
"In this they are pioneers."
Coun Mark Dunn, cabinet member for childrenís services for West Sussex County Council said: "The winners will be the students of Worthing, their parents, their future employers and ultimately the town itself."
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