The Government has committed $107.5 million to Lincoln University's rebuild.
Tertiary Education Minister Steven Joyce announced the investment to more than 100 staff and crown research representatives at the campus this afternoon.
It received "very significant damage" in the Canterbury quakes, losing 40 per cent of its academic floor space, said Joyce.
He said the funding was contingent on the university integrating its new facilities with others in the Lincoln hub.
The hub involves the university and several crown research institutes.
Lincoln University Vice-chancellor Andy West said today was "without exaggeration" the most important day in the university's history.
He thanked the Government, and colleagues for making the investment happen through its reform to land-based courses and "arduous and emotionally gruelling" restructure.
"Lincoln University hasn't sat back and waited for a handout, we ourselves have done the hard yards."
"The future is bright, in fact it couldn't be brighter."
- The Press