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STROUD College could have a multi-million pound new building by 2007.
The college is tendering for architects and consultants to build what is believed to be a £10.5 million block on the campus, with work beginning sometime next year.
Marketing manager Jim Kelly said: "The college has applied for permission to rebuild the Stratford Road campus on part of the existing site.
"This is an exciting development that would provide Stroud with a new college of 21st century facilities and with students at the centre of everything we do. "It has the support of Stroud District Council as well as the Learning Skills Council. It does however have a considerable way to go before the final decision is made and approval is given.
"It is hoped that work would be completed in time for opening in January 2007." Mr Kelly would not specify a figure or give details of where the building would be sited.
"We're just not in a position to comment on the amount but that will come out in the near future. It's at a very early stage and we don't want to raise people's expectations and hopes because there's the possibility it gets turned down."
Cllr Nigel Studdert-Kennedy, Stroud District Council cabinet member for regeneration and tourism, said: "I welcome anything that increases the interest in Stroud itself and the district as a whole."
Town mayor Cllr Kevin Cranston also welcomed the proposal, which he added would be up for discussion by full council at the next available opportunity.
He said: "We haven't formed an official view on it yet. We've only just heard about it. In principle we've no problem with people investing millions of pounds in the town. We would like inward investment and clearly improving facilities for local students could only be beneficial and we would like to see the plans in more detail and perhaps have an opportunity to discuss and have input to make sure we get the best for the town." More information about the proposed development is expected within weeks.
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