Up to 320 young offenders, aged between 12 and 17-years-old, will be housed in the facility, which is to be built on land next to Glen Parva Youth Offenders Institute.
Work on building the East Midlands secure college will start next year with a 2017 opening date.
The facility is designed to pilot a network of secure colleges across England and Wales.
The pioneering fortified school will provide strong discipline while focusing on rehabilitation and education.
It will have a headteacher or principal at the core of a leadership team made up of educational professionals and offender managers.