The new campus will be developed by the University of Waikato on behalf of the Bay of Plenty Tertiary Education Partnership to provide a purpose-built space for leading academics, researchers, postgraduate and undergraduate students.
It will also cater for industry and community collaborations, and commercialisation activities.
The campus which is expected to open in 2020 will offer programmes that relate to regional activity, including marine, ICT and logistics.
Further courses will be developed over time to support areas of economic and industry need in the Bay of Plenty.
The formal signing of the Heads of Agreement will take place in the coming weeks.
Next week work will begin on finalising funding agreements, appointing design and project teams, and appointing representatives to the trust that will oversee the project.
University of Waikato Vice-Chancellor Professor Neil Quigley said it was an exciting milestone for the Bay of Plenty community, the University and the tertiary partners.
"It's important for the region that we can attract or retain young people who will make the Bay of Plenty even stronger. This campus, which will be one of the most significant developments in the region in many years, will do that for the region."
Bay of Plenty Regional Council Chairman Doug Leeder said he was excited by the prospect of more students being attracted to study in the Bay of Plenty, and the business focussed research and development opportunities the new campus would offer.
"The agreement on the Tertiary Campus shows the strength of our regional partnerships, and what can be achieved through vision and collaboration. This campus will deliver improved educational and economic opportunities, and is a major part of our commitment to economic development through our Regional Infrastructure Fund."
TECT Chairperson Bill Holland said: "TECT is extremely pleased that there has been agreement by all parties on the future direction of this project. We have always believed that the University campus is an important and exciting project for the city and although there is still plenty of work ahead, this is a significant milestone."
Tauranga Mayor Stuart Crosby said having a world-class university campus would play a major role in supporting the growth of Tauranga by providing jobs and education that attract people and businesses from all over the world.
"The campus will contribute to the city's culture and economy through research, reputation and building, and make our city more competitive. It simply can't be built fast enough," he said.
It's expected 8000 tertiary students would study here over the coming 17-year period.
Over the two stages of construction it is hoped the project would create more than $49 million in direct construction expenditure, $47 million in flow-on effects for suppliers and households
Plus an estimated 427 construction jobs and 272 tertiary operations jobs.
