The Bay's two largest tertiary providers could merge by the beginning of next year.
Tauranga's Bay of Plenty Polytechnic and Rotorua's Waiariki Institute of Technology have been in discussions about a merger for three or four years, Bay of Plenty Polytechnic council chairman Ian Turner said.
An initial strategic assessment looking into collaboration options was carried out earlier this year and Waiariki's and Bay of Plenty Polytechnic's councils agreed a merger appeared to be the best way forward.
''The institutes were not far apart geographically and duplicate services offered by both meant there was "unnecessary competition", Mr Turner told the Bay of Plenty Times.
"Each institute is funded separately, each institute is struggling to make its funding targets. Inevitably, there's a strong element of competition. Creating one entity takes that out of play.
"We're also acutely aware there is a need for the sort of vocational education that polytechs provide in the wider region, and we're not really able to provide it to the extent the population deserves. But together, we can have a far greater impact."
Mr Turner said if the merger went ahead, it would be convenient for the combined entity to start afresh next year.
A lot of work would be needed for this to happen, but Mr Turner believed it was achievable.
The business case will be reviewed by both institutes' councils before any agreement to merge is made, likely by the end of the month. It would then be presented to Tertiary Education Minister Steven Joyce and further consultation would be undertaken.
"Generally, the attitude has been pretty positive. Most people can see the benefits."
Waiariki's council chairman Graeme Nahkies said the councils had "agreed in principle" a new combined entity would have the greatest potential to deliver the outcomes sought and benefits for students.
Mr Nahkies said consultation was ongoing and both councils expected a decision would be made by July about whether to make a recommendation to the Minister for Tertiary Education.
"If that recommendation is that the two institutions should merge, then the minister will undertake his own consultation process."
The Bay of Plenty Times first reported on the possibility in March when the two entities announced they were reviewing the level of collaboration between them. The two tertiary institutes are already co-operating to establish a new $88 million tertiary campus in Tauranga's downtown. The other partners in the project were the University of Waikato and Whakatane's Te Whare Wananga O Awanuiarangi.
A tale of two institutes
* Waiariki Institute of Technology
Between 6000 and 10,000 New Zealand and approximately 800 international students come to Waiariki each year for diplomas, degrees, graduate and postgraduate qualifications.
Students from many places such as India, South America, Japan, China, Fiji, Philippines, Nepal, Sri Lanka and others come to Waiariki for their tertiary education.
Bay of Plenty Polytechnic - Te Kuratini o Poike - was established in 1982 as a local community college, providing training mainly in trades, horticulture, agriculture and business. Today thousands of students take certificate, diploma and degree programmes in a range of areas.