The Government is contributing almost $100 million to the expansion of Auckland University of Technology's campus in South Auckland.
The guaranteed funding will be spread over the next seven years to allow AUT to build new facilities at its Manukau campus and attract more students.
The campus opened in 2010 and offers courses in business, education, health sciences and arts. AUT will expand its curriculum there and focus on attracting more Maori and Pasifika students.
The university is expected to quadruple its number of students at the campus from 940 to over 4100 by 2020.
Prime Minister John Key said on Friday it's a good investment and the Government is taking steps to make sure that tertiary education is affordable and accessible for everyone.
Construction on the campus will begin in 2014.