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The Employment and Learning Minister, Sir Reg Empey, has announced a £16m funding pledge for a university campus in Belfast's Cathedral Quarter.
He said the planned £250m development by the University of Ulster in York Street would be the city's biggest since Victoria Square.
The university will relocate many courses from its Jordanstown campus to Belfast as part of the scheme.
Its vice-chancellor, Professor Richard Barnett, has welcomed the funding.
He said the new campus would play a "significant role in the academic, cultural, social and economic regeneration of Belfast".
"The relocation of 12,000 students from our Jordanstown campus to join the 2,000 students currently studying in York Street will not only boost the city centre but will also link in well with other exciting developments across the city," he added.
It is expected the construction of the new campus will be completed by 2018.
The funding announcement was made at the Belfast City of Quarters conference, a two day event, which continues on Friday at the Culturlann in west Belfast.

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