The college said the final funding package was still to be agreed, but it had “begun talks on a range of options.”
It said the move would bring education, employability services and support together under one roof for “the first time in Scotland.”
Dundee and Angus College principal Simon Hewitt said the plan was “an amazing opportunity to build world-class facilities that are fit for the future.”
He said: “If we were to develop a new campus on the site of the Wellgate Shopping Centre it would put the college at the heart of Dundee’s regeneration and breathe much-needed new life into the city centre.”
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