Coventry University's Scarborough campus will be built on land near the town's former Weaponness Park and Ride site and is due to open in 2016.
A spokesman for the university said it was hoped the development would create 100 jobs over the next three years.
The site will incorporate University Technical College Scarborough, which is also due to open in 2016.
The campus will offer a range of courses including law and policing, accounting and finance and science and engineering.
Ian Dunn, deputy vice-chancellor at Coventry University, which is investing £12m in the campus, said: "Bringing high quality higher education to Scarborough is the start of a journey towards a full university in the town.
Asked why the university was building a campus in Scarborough, he said: "Excellence in higher education should not be constrained by geography".
Councillor Tom Fox, leader of Scarborough Borough Council, said:"Backed by local businesses that are committed to raising the skills levels of the employees of the future, the campus will be a fundamental part of the growth of the area's economy from now on."
In February, the council unveiled plans for a 2,000-capacity community football stadium for Scarborough Athletic Football Club, also being built on the site.
Coventry University has previously made a bid to take over University of Hull's Scarborough campus, in Filey Road but lost out to the Hull College Group.
A new university campus is to be built in Scarborough as part of a £45m education and sports facility.