The university currently attracts 1,600 students each year and is hoping to up the figure to 2,000 by creating new buildings and offering more courses.

The bid is part of a scheme called New University Challenge which was launched in March.

The project allows colleges and universities across the country to bid for funding from the Higher Education Funding Council for England (HEFCE).

Dr Craig Gaskell, dean of the campus, said: "We've already got a vibrant campus with excellent facilities, but we would like to make it more accessible to everyone in the town.

"We're not looking to move but we would like to develop what we've got. It's all about aligning the campus to the needs of the town."

Dr Gaskell added that the expansion was part of a transformation which will see the university offering new foundation degree courses, such as health and social care.

The changes would also create new teaching jobs as student numbers increase.

Dr Gaskell said: "We are in the process of recruiting staff in various areas at the moment and we will always maintain a strong staff-student ratio."

Campus bosses are now starting a consultation process and will shortly be appointing an architect to draw up plans for the build.

Detailed plans on the proposals will be submitted to HEFCE in the New Year.

Dr Gaskell said: "Hopefully we'll secure the funding package to support our strategic transformation. It's an incredibly exciting time for all of us and exciting time to be in Scarborough."

The Department for Innovation, Universities and Skills announced yesterday that Scarborough was one of 27 towns in England which had made a bid for the funding.

The Government hopes that the scheme will provide additional study places for up to 10,000 students across the country.