Architect Glen Howels has designed the scheme for the site on the corner of Shakespeare Street and north Church Street, which has gone out to public consultation prior to a planning application going in later this month.
The student complex will include a gym, dance studio and games and cinema and a large market food hall open to the public.
Inspired by the nearby Lace Market, the building complex is being designed sensitively and sustainably to sit appropriately alongside listed buildings, particularly on the corner opposite the Arkwright building, and the Arboretum Conservation Area.