Alumno Developments has been granted planning permission to build three buildings, ranging in height from 9 storeys to 13 storeys.
The City Locks scheme, designed by Glenn Howells Architects, will provide 625 student bedrooms and is expected to cost around £40m to build.
Sources close to the project say John Sisk is best placed to win the job ahead of rivals Kier, Morgan Sindall, McAleer & Rushe.