Vision West Notts, which used to be known as West Nottinghamshire College, is to have a new teaching block constructed.
The energy efficient building will cost £7.8 million and benefit from the installation of a natural ventilation system.
As well as classrooms it will have IT suites, salons and a spa spread over its three storeys, as well as a kitchen, all of which will be used to train students.
Asha Khemka OBE, principal of the college, said: "By opening up the restaurant, health spa and hair and beauty salons to the public, students will be able to put their skills to the test and gain vital work experience, while the community benefits from brand new facilities right on their doorstep."
It is hoped that when the facility is completed it will achieve a BREEAM accreditation of very good.
Vision West Notts provides a number of courses including GCSEs, A Levels and vocational training to 20,000 students a year.