The College of West Anglia is to relocate to a £50 million state-of-the-art campus in the Nar Ouse Regeneration Area, set to include more than 600 parking spaces, residential accommodation and extensive sports facilities. It will be built on land to the left of Nar Ouse Way driving away from the town centre and will retain its current name.

It is hoped the development, originally due for completion in 2011, will act as a catalyst for further investment in the area.

It forms part of a larger project – a second campus planned for just off the A141 near March is to replace Isle College in Wisbech. The decision to focus on this site first will delay Lynn's grand opening until September 2012.

College chiefs have decided to carry out the project, the largest capital project being overseen by the Learning and Skills Council (LSC), in phases after complex negotiations over the South Lynn site already pushed completion back a year.

Director of capital developments Gordon Gillespie said: "We were focusing on what was best for Lynn and decided it would be better to phase the building so we could move at the beginning of the academic year. Moving students to a new building is logistically difficult, but it's also less than beneficial to learning."

The South Lynn site, currently derelict, measures more than 17 acres and the proposed four-storey building will cover around 28,000 square metres, set within landscaped grounds.

Students and staff will have access to a huge range of modern, purpose-built facilities including classrooms, IT suites, workshops, drama studios, an outdoor astro-turf sports pitch, hair and beauty salons and catering outlets.

There are plans for 622 parking spaces, 300 cycle stands, drop-off and collection points and parking for up to 20 buses.

Thousands of people will be travelling to the campus at peak times of the day, putting pressure on the South Gates roundabout and the A47, as well as the obvious strain on Nar Ouse Way.

The application's supporting statement, however, said the development "will not have a detrimental effect on the highway network."

It said the college would be well placed to allow staff, pupils and visitors to use public transport and sustainable modes of transport rather than private cars.

In the long term, the college is expected to attract businesses to the town, boosting the economy and creating local jobs.

The application said the borough was "defined as a priority zone as it has suffered from weak economic performance and high levels of deprivation" and the college would act as a "significant catalyst" in bringing further development forward.

West Norfolk Council leader Mr Nick Daubney told the Lynn News: "This is a big move forward for Lynn and West Norfolk and part of this massive picture we are working on at the moment to encourage activity and growth in the town.

"It will create opportunities for the whole community.