Talks are under way to develop a £60m "knowledge quarter" in Newport centre.
The development at Newport City Campus would include the expansion of a learning campus on the riverbank and Coleg Gwent's Nash Road campus would relocate to a new building.
The University of South Wales (USW) and Coleg Gwent have formed a task force.
USW has already started investing to bring social work, early years and counselling provision together with teacher training.
Funding is likely to involve a combination of USW money raised from the sale of the former Caerleon campus, Coleg Gwent investment, commercial finance, and public investment.