The Multiversity plan has already received almost £50m in Government funding as part of the Levelling Up Fund and Blackpool Town Deal.
The approval paves the way for a 3-acre site including 59 homes in the Talbot Gateway area to be levelled to make way for a 350,000 sq ft education facility across three major blocks rising to five storeys.
It will be delivered in two phases, starting with an education campus on the corner of Cookson Street and George Street, followed by future development across the southern end of the site by Milbourne Street and Grosvenor Street.
Once built the campus will be leased to Blackpool and the Fylde College.
Ed Harvey, associate director at planning consultant Avison Young, said: “We’re delighted that the planning committee has approved the Multiversity plans. It’s a big step forward for Blackpool’s future and an important next step in the ongoing regeneration of the Town Centre.”