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
Firearms amnesty comes into effect
Chickenpox jab to become part of routine childhood vaccinations
Hark! Claims school didn't allow Christmas carols to be sung "rumour" and "hearsay", says minister
Education minister defends attempt to reopen schools for a half day on snow day
Senior lecturer struck off nursing register after groping student