Darlington College of Technology last night unveiled a new site for its £30m showcase campus following the collapse of a previous deal.

The college, which has 15,000 full and part-time students from across the region, will now move to Haughton Road.

It will form part of an extensive development for the area which is due to include new businesses, a hotel and conference facilities.

Once the 75-acre site is developed, it is hoped it will become a flagship project for the whole of the Tees Valley area.

College officials had initially wanted to move to the Torrington site on Yarm Road, despite fears by some residents that it would mean an increase in traffic.

But the deal surrounding the site collapsed and attention turned to the former railway sidings on Haughton Road.

Sarah Farley, college principal and chief executive, said: "When we initially started looking for a new venue a year ago, the Haughton Road site was not available.

"I actually prefer it to Yarm Road and am delighted we have reached an agreement on the site.

"It is as near to the town centre as we are now, which is a great advantage."

The college will contribute to the cost of the infrastructure and will then pay for the "learning park" with money from the Learning and Skills Council and from the profits of selling its Cleveland Avenue site and sports facilities in Larchfield Street.

The college will also have to take out a small loan to help cover the cost of the development.

Ms Farley said: "I believe the plans will give Darlington the best educational facilities in the North-East and could even become a national model for further education."

Council leader John Williams said: "This site offers an ideal opportunity for the college to realise its long -term ambitions."

It is hoped the new college will be open by autumn 2005.