The Temple Quarter Campus will be built near Bristol Temple Meads train station on the derelict former Royal Mail sorting office site.
The target is to open by autumn 2021.
The new campus will have a ‘Digital Innovation Hub’, a student residential village and Engine Shed 2 – an expansion of the Engine Shed business centre. The educational concept is that new degree courses will be developed in conjunction with industry partners.
"We now have the opportunity to re-imagine our university as an organisation that is completely porous with our partners, enabling students, researchers and people from all walks of life to move seamlessly between the city, the academy and the workplace, feeding the talent pipeline and creating opportunities," said vice-chancellor Hugh Brady.
Mayor of Bristol Marvin Rees said: "This news confirms our place as the UK’s most technologically advanced city-region and one of the world’s leading digital cities. The future of UK industry relies on an ability to innovate and lead in the digital and technological sectors, but of course this must be built on the foundations of a stronger, fairer society which provides equal opportunity to everyone.”
He added: "The deal also gives us renewed hope of a solution to the eyesore of the former sorting office. In future, visitors will no longer be welcomed to Bristol by a derelict building, but by a flourishing and inclusive home of digital excellence, innovation, education and industry."
The new campus follows the collaboration between the University and Bristol City Council to establish Engine Shed as an enterprise hub. Since opening in 2013 it has supported 72 companies through the Bristol SETsquared Centre.