Work is due to start on the design and build contract for the project reported to be valued at around £70m.
The new four-storey building featuring a full-height glazed aspect will replace the existing Claremont Road building, named after pioneering North East railway engineer George Stephenson.
Durham-based Rainton Construction has the groundworks and foundation package for the building designed by local architect Norr Consultants with JH Partners acting as M&E consultant.
Professor Ian Postlethwaite, Head of Engineering at Newcastle University, said: “The eye-catching building will make a statement about Engineering at Newcastle, representing substantial world-leading research, innovation and cutting-edge teaching.
“The redevelopment will help generate partnerships with industry and support us in addressing the Industrial Strategy Grand Challenges, the climate emergency and critical skills shortages.”