Construction is due to start next Spring on a new three-storey building for students and staff from the faculties of Development and Society and Health and Wellbeing.
Director of Estates and Facilities Mark Swales said: “The university is committed to becoming a top-50 university by 2015 and our campus is a key part of this.
“This redevelopment will give our students better facilities and timetabled space. It will provide better space for student support services, learning support and the students union, along with improved accommodation and services for staff.
“We are working closely with the planners to ensure the new development at Collegiate Campus will be innovative, allowing students, staff and the local community to better enjoy the environment and heritage of the picturesque campus.”
Plans are now being submitted to the council.
The project also involves refurbishing other buildings. Demolition of Marshall Hall and neighbouring structures is due to begin in the autumn and completion of the whole scheme is due by autumn 2014.
Architects are HLM, whose head office is in Sheffield.
Director Nick Beecroft said: “The building will respond to the conservation area setting in which the campus is based, and consists of a series of pavilions around a central atrium space that looks out onto the landscaped setting.
“As a leading sustainable architect, we are delighted to have seen the designs develop into a truly green and sustainable building for the future.”
Finance is coming from the university, with some of the money expected to come from the sale of the Psalter Lane campus where Hallam has teamed up with Bellway Homes.