Plans for an office block of up to five storeys on a sensitive site near Brighton are being proposed.
Southern Water wants to build the block in Lewes Road, Falmer.
It would provide 67,000 sq ft of office space with 187 car parking spaces.
There would also be an underpass to connect Sussex and Brighton universities and a new car park for Falmer railway station.
Councillor Chris Morley is being recommended at a meeting on Tuesday to approve an environmental impact assessment of the site, which is allocated for high-tech and office use.
Environment director Alan McCarthy said: "A four to five-storey development will be very prominent in this location.
"Two planning applications for a community stadium have been submitted in the vicinity and both universities have development proposals on their respective campuses."
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