Network Rail has signed an agreement with developer Brookgate which will see Cambridge station overhauled as part of a £850m regeneration of the city's centre.
The CB1 development covers 1.4m sq ft of land around the railway station.
The first phase will involve the transformation of the station into a wider public transport hub, with expanded ticket hall, bus interchange, and highways improvements.
Network Rail will contribute £4.25m with the local authority providing a further £4.5m.
Also included are 1,062 student bedrooms for Anglia Ruskin University.
Later phases of CB1 will include 331 homes, a multi-storey car-park, a hotel, and university buildings.