The Federal Government will fund half the cost of building the facility, while BRACE will fund the remainder.

The facility is earmarked for completion by mid next year and will be built next to BRACE's facilities in Windermere St South.

It will allow the organisation to cater for another 2000 training places per year, up from about 3800 students enrolled in industry places this year.

The centre, to be built on 1000 square metres, will cater for training in industries including occupational health and safety, information technology, business administration and pre-apprenticeships.

BRACE chief executive officer Christopher Carroll said the facility was wonderful.

"(It) will assist both jobseekers and those currently employed and will make a real contribution to Ballarat's training needs for today and into the future," Mr Carroll said.

All permits for the facility have been approved in a bid to fast-track works, which are expected to begin within months.

Ballarat MHR Catherine King said the centre would help secure economic activity, help address the impact of the economic downturn and increase the training sector's long-term ability to meet skills needs.

Ms King also announced funding for three other regional recipients.

Bacchus Marsh Community College received $1.5 million to fund a major refurbishment of its classroom building and build a training facility, while Highlands Support Services received $145,000 to upgrade its facilities.

Daylesford Neighbourhood Centre received $239,980 to create a new learning environment.