Barnwell Gate, a low-rise development of 154 beds, will be built at 444 Newmarket Road. The current occupant of the site, a car dealership, is relocating to other premises.
Contractors have yet to be appointed but construction is expected to begin in December.
Most of the accommodation will consist of clusters of rooms with shared living and kitchen facilities; 20 self-contained studio apartments will also be provided.
Future Generation is the purpose-built student accommodation (PBSA) arm of developer Southern Grove.
Chairman Andrew Southern said: “This attractive scheme is going to continue to show off our strengths when it comes to designing spacious living quarters that don’t cut corners when it comes to design and quality of life for students.
“While demand for student accommodation in some parts of the country is beginning to tail off, there is huge ongoing demand for purpose-built student accommodation in Cambridge.”