Canterbury University will receive $260 million from the Government to support its rebuild programme.
The funding boost was announced this afternoon by Tertiary Education, Skills and Employment Minister Steven Joyce.
"The Government's contribution will fund a new science centre and expanded and upgraded engineering facilities. These will provide modern teaching and research facilities and cater for more students," he said.
"The 2010 and 2011 earthquakes have had a major impact on the university, with all of its buildings and facilities affected. As a result of the earthquakes, student numbers were down 15 per cent in 2012 compared to the previous three-year average."
Canterbury University would find it difficult to recover without the funding support, Mr Joyce said.