Plans for the project, which will be paid for by loans, university reserves and NHS cash, are due to be submitted to the city council next month.
If they are approved, the university aims to have the new building ready for September 2013, when the university’s 1,300 medical students will move in.
The University of Leicester has invested £50m in the last three years on a redeveloped library and Students’ Union and plans to invest around £200 million in the estate in the next five years.
Last month it revealed plans for a £12.6m cardiovascular research centre and plans are now well advanced to refurbish and reclad the famous Charles Wilson Building (below).
Professor Stewart Peterson, the university’s head of medical and social care education, said: “We want to attract the best medical students.
“We’re also acutely aware that students want the best facilities and value for money when being charged £9,000 fees.”
Once the new building is opened, the former school in University Road will be refurbished to become a research centre.
The project is also set to benefit Regent College, which owns the land earmarked for the new medical school. Proceeds from the sale of land will be used to pay for a sports hall, changing rooms, classrooms and a pitch.