The NESST project involves construction of a 5 to 7 storey building, including partial re-use of the Wynne Jones building in Ellison Place to create a new facility.
McAlpine is expected to finalise a price for a full design and building contract at the end of the year.
Designed by Ryder Architecture, NESST will be delivered in partnership with the UK Space Agency and Lockheed Martin.
The building will contain spaces for Northumbria University and its commercial partner Lockheed Martin, including satellite manufacturing and testing facilities, large lecture theatres and mission control centre and electrical and laser communications laboratories.