The £1.5million development, which is being built by John Turner Construction Group, will host IT and computer courses from September. It will include eight classrooms over two floors and house 200 computers.
As part of the project a new science laboratory will be installed in the Priestley Building and psychology and maths lessons will be given new permanent locations elsewhere on campus.
An all-weather pitch will be transformed into a dedicated training space and recreation areas, including a short basketball court.
Principal Mike Southworth said the improvements would enhance the learning experience for thousands of Priestley students over the coming years.
“It is a major commitment to ensuring the learning experience at Priestley College continues to evolve and improve,” he said.
“We already boast some facilities that are of university standard and the new technology centre will be an exciting place for students to learn.”
The new building will be finished by April 2014 and the entire project completed in September. It will replace the Lewis Carroll building, which will be removed during the summer break.
The investment follows improvements to the college’s arts centre and separate design technology building.
Overall, £14million has been spent in the past eight years to create an environment that brings out the best in students.
Last year Priestley became the first dedicated sixth form college in the country to receive STEM assured status making it one of the UK’s top providers of education in Science, Technology, Engineering and Maths.
“STEM status confirmed that we are successfully preparing students for university and providing them with the essential skills needed to help them gain employment,” said Mike Southworth.
“Our new technology centre proves we are making a long-standing commitment to science and technology that will benefit young people for years to come.”