The first brick for the University Centre Peterborough building in Park Crescent, which will form the main hub of activity on the site, is expected to be laid next month.

Sited within the Peterborough Regional College (PRC) campus, the three storey-building will provide 3,000sq ft space to include a large, tiered lecture theatre seating 100 students and 14 separate teaching rooms.

It will also have quiet study areas on all three floors, a dedicated computer room and a spacious reception area which will include a coffee and sandwich bar and an area for student union use.

The University Centre building will be used primarily for younger students, 18-year-olds progressing from Peterborough Regional College, and for vocational courses.

Work is scheduled to be completed in August next year enabling about 1,500 students to begin studying for degree-level courses from September 2009.

Cabinet member for housing, regeneration and economic development at Peterborough City Council Cllr Graham Murphy called the milestone a first step towards nurturing the city's own students of the future.

He said: "We have aspired for many years towards achieving a university in Peterborough and have maintained our promise that one day this would be realised.

"Delivery is on its way. The creation of a university centre for Peterborough will spearhead a major investment in higher education in the city, and will enhance the skills of our workforce of the future."

The centre is the first new building for the university. Eventually there will be four centres for specific faculties such as business studies, nursing and environmental studies, and will be built across the city, providing education for more than 4,000 students by 2013.

Steve Bowyer, who is director of strategic growth of Opportunity Peterborough, one of the partner agencies spearheading the growth of the city along with Peterborough City Council, said: "This is a giant leap forward in Peterborough's growth and regeneration.

"University Centre Peterborough will assist in developing our economy, enhancing skill opportunities for all ages and ensuring that we retain our young people in the city."

The University Centre's executive director Linda Jones said: "We are delighted with how quickly this project is moving forward, and this decision recognises the strength of partnership work within the city to establish a facility that will help Peterborough grow and develop."

The project is being funded through a joint venture between PRC and Anglia Ruskin University, with funding from the Higher Education Funding Council for England. Further funding is provided by the East of England Development Agency and the Learning and Skills Council.