Work will see South Tyneside College and South Shields Marine School relocate from the current Westoe site into the heart of the town centre.
Castle will carry out construction of the new 15,000 sq m campus and has been appointed on a pre-construction services agreement ahead of an anticipated start on site in the summer.
Over the coming months Castle will finalise detailed designs for the scheme and undertake preparatory works on site.
Planning permission was granted in 2023, and demolition works have been completed to prepare the site for development.
Cllr Tracey Dixon, Leader of South Tyneside Council, said: “We’re delighted to welcome Castle on board. They have a proven track record of successfully delivering on projects such as this.
“As a local firm, their appointment will create jobs and boost the borough’s economy.
“Momentum is building on this project now and people will start to see some activity on site over the coming weeks.
Tony Lister, co-founder and CEO, Castle, said: “As a South Tyneside-based business we are delighted to have won the contract to deliver a project which is destined to have a profound, positive impact on the regeneration of the borough.
“Castle is passionate about the development and upskilling of all our staff, so the fact we are delivering a world class learning facility for the people of the borough, resonates very strongly with us.
“The contract will enable us to employ additional staff and, whenever possible, we will call upon local suppliers and services to support our teams.”