Plans for a new £23 million Keighley College are set to receive Bradford Council backing.
Support for the scheme would include a new Keighley Bus Museum, bus interchange and commuter car park.
Some businesses in Dalton Lane would be forced out to make way for the massive complex.
The vacated college site in Cavendish Street could then be used for shops, leisure or housing.
The plans, including financial and legal aspects, will be put before the council's ruling executive on Tuesday.
Councillors will be asked to approve a top-level partnership with Keighley College bosses to drive through the scheme.
Bradford has been working with the college for several months to develop the proposals as a flagship regeneration project.
The council says benefits include revitalising rundown Dalton Lane, attracting more students and encouraging greater use of public transport.
The new complex would run along Dalton Lane from its junction with Bradford Road to Brewery Street, next to the Burgess Ford premises.
A five-storey college building alongside the railway would accommodate all 14,000 students. Compulsory purchase orders might have to be served on Atley Works and Eagle Mills, currently home to about six small firms.
This would make way for a plush new Keighley Bus Museum, housing about 50 historic vehicles.
The former Station Hotel, on Station Bridge -- currently home to the Richard Craven electrical store -- would also be demolished.
This site would become a 120-space car park for railway passengers and a mini bus interchange for use by college students.
Cllr Simon Cooke, the council's regeneration chief, feels it is important the Dalton Lane development moves forward.
He said: "It is a fantastic opportunity for the college and for the redevelopment of a large site in the centre of town.
David Gates, the college principal, said the exciting project would involve close liaison with Keighley businesses to plan courses.
The new college would have separate centres for advanced engineering, construction, computing, technology, multi-media, health and social care and hairdressing.
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