Monash University has reached a deal with the University of Ballarat to hand over its Gippsland campus.
The governing councils of the two institutions have agreed on the transfer, with the aim of establishing a larger, regionally focused institution, which will involve Ballarat being renamed. The new institution is expected to launch on 1 January 2014.
The institutions will now seek approval from the state and commonwealth governments and develop a plan for the changes.