All non-listed buildings at the old college will be demolished and more than 80 retirement homes built.
The site was bought by McCarthy & Stone and Highland Council. McCarthy & Stone, which designed the scheme, will build 45 homes on the vacant site, and the council will deliver 40 affordable retirement homes.
The remaining building on the site, the historic and listed Inverness Royal Academy, will be converted by Wasps Studios into a studio and art gallery for local artists.
The Scottish Futures Trust (SFT) has been working with the Scottish Funding Council and Inverness College to secure the most appropriate end use for the Midmills site that the college vacated when it moved to its new Beechwood campus in 2015.
“We’ve secured a very positive outcome for this site which ensures much-needed retirement homes will be built,” said Anna Tozer, strategic disposals manager at the Scottish Futures Trust. “Securing the architecturally significant Inverness Royal Academy building for the local community to use and enjoy as an art facility is a real bonus, helping safeguard its future.”