Contracts have been exchanged between the University and its appointed construction partner, Laing O'Rourke, and work will begin at the end of this month.
The new development, which is positioned at the edge of the University's Science Site along Stockton Road, in Durham City, will sustain 200 construction jobs in the local economy.
The development will house a major library extension, a new Law School and a student services building to be known as the Palatine Centre.
This is not an expansion of the University, but brings together activities which are currently dispersed across the City into purpose-built facilities. The scheme was granted planning permission by Durham County Council in December 2009 and is due to be completed by September 2012.
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The project is a major step forward in the University's long-term strategy to provide sustainable and world-class facilities in line with its standing as a top five UK university. Its buildings in Durham City and at Stockton form one of the most complex and important university estates in the world. There are 63 Grade I and II listed buildings and the UNESCO World Heritage Site which is owned jointly with Durham Cathedral.
The design of the scheme was informed by a two-year programme of consultation with students, staff, local residents and regulatory bodies. The new buildings will have first rate environmental credentials, achieving the recognised BRE Environmental Assessment Method (BREEAM) 'excellent' standard.
University Vice-Chancellor and Durham resident, Professor Chris Higgins said: "These new developments are central to Durham University's estates strategy and will be a catalyst for improvements across the City. Our new Law School will build on our renowned academic strengths in this area. Maintaining a world-class library must be at the heart of any major University, and the Palatine Centre brings together student services which are currently scattered around the City.
"The scheme as a whole takes advantage of an under-utilised site to provide a coherent, high-quality new development."
(CD/KMcA)
