Government plans to sell the Nunnery on the edge of Douglas could trigger a shake-up of facilities at Isle of Man College.
The Manx Educational Foundation has been offered an exclusive deal to buy the Nunnery building and estate for £5 million.
The charity wants to create a specialist ICT university and now has six months to attract £12 million of private funding to invest in the project.
Meanwhile, higher education students currently taught at the Nunnery site will be re-located at Isle of Man College.
Department of Education boss Professor Ronald Barr says developments at the Nunnery will have a domino effect, sparking a re think on college facilities:
Clip 1
Campaigner threatens legal action over Island's Assisted Dying Bill
MHK welcomes move towards 'international best practice' over Budget process
Election candidate claims public meeting attendance 'unbalanced'
Low cloud and fog causing disruption at airport