Bradford College today announced its intention to push ahead with plans to merge with the city's university.
The college corporation reaffirmed its commitment to a full merger of the two institutions following a board meeting.
It is understood last minute talks have taken place between the two institutions and the Bradford-based Learning and Skills Council which had voiced concerns about the business plans.
Negotiations are now due to continue between the parties in an effort to resolve outstanding issues of "principle and technicality" about how the £100 million merger might be achieved.
In a joint statement, the Vice-chancellor of the University of Bradford, Professor Chris Taylor, and Alan Hodgson, principal of Bradford College, said both parties were committed to resolving the issues and wanted to "move forward together".
It read: "Both institutions remain committed to the vision for providing the best possible education and training opportunities for the city, district and region, but we are still discussing the best way of delivering this. This will be discussed at further meetings within the next few weeks."
The problems are understood to centre around funding of the massive project, which needs to win approval from the LSC.
It was feared the huge cost of rebuilding the joint campus to create a 'learning village', and revenue costs such as staff restructuring, could cripple the project.
And staff at the university also voiced their disapproval when two thirds of members of the Association of University Teachers voted against the proposals in a ballot.
But Gary Rae, executive manager for corporate affairs at the LSC in West Yorkshire, said he was pleased the project still had a future.
"We are encouraged that both institutions still wish to resolve the fundamental issues in relation to the proposed merger," he said.
"Whatever the outcome of the discussions both the LSC and our colleagues at the Higher Education Funding Council for England, together with the two institutions, remain committed to developing a solution that first and foremost meets the needs of learners in the city, across the district and beyond."
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