Unite Students has secured planning permission to improve and extend one of its sites in Durham, with the intention of it becoming the University's 18th college.
In an extension to a partnership between the student accommodation provider and Durham University, Rushford Court will initially become the temporary home of the university's College of St Hild and St Bede.
Longer term, it is intended that it will provide the university with a new 18th college.
As part of the backed plans, the building on North Road, which comprises 348 bedrooms, will be upgraded to provide facilities for both students and staff, including study spaces, staff offices, welfare, and a new space which will include common rooms, study areas and a bar.
Work to upgrade the Victorian former hospital building will begin this summer and Unite Students will continue to operate the building while work is carried out.
Tom Brewerton, group development director at Unite Students, said: "It's great that Durham County Council has recognised the benefits of this plan to upgrade Rushford Court. We're proud to be working in partnership with Durham University on this project, which we hope will lead to the creation of a university college.
"We're pleased to be able to support Durham University in this way and look forward to continuing to work closely together going forward and strengthening our partnership."
Jeremy Cook, pro-vice chancellor (colleges and student experience) at Durham University, added: "We are delighted with the decision made by Durham County Council. It enables the university to continue our fantastic working relationship with Unite Students and create a new college community environment from which our current and future students will feel a number of benefits.
"This planned development also enables us to continue our planned redevelopment of existing college sites and provide an investment into the life blood of our university, which is our family of colleges."
Unite Students is headquartered in Bristol.
