City of Ballarat chief executive Evan King said Federation University's vision complemented many City of Ballarat strategies and staff had been working closely with university leadership.

He said the 'university town' concept could become Federation University's point of difference.

"Not only does Fed Uni offer high quality learning, it can also offer great experiences for students that can come and learn, live and apply their skills in Ballarat," he said.

Federation University revealed on Wednesday plans to bring all teaching in Ballarat into a centralised location at the SMB Campus on Lydiard Street.

Flagged changes include the construction of new buildings, a multi-storey car park, the revamp of heritage buildings and changes to the streetscape.

The university announced it would gift its Camp Street Campus, the current Arts Academy, to the Ballarat community, with the use to be decided through community consultation.

READ MORE ABOUT THE VISION HERE: Big plans for Ballarat to become university town revealed

A new Arts Academy will be constructed in the SMB Campus.

Mr King said City of Ballarat would work closely with Federation University during the community consultation period for visions for the Camp Street campus.

"We will be listening intently throughout the consultation period to hear what the community has to say about Camp Street moving forward," he said.

Federation University is the current committee of management for the Crown land, but this management arrangement could change depending on the best use decided for the precinct.

Community consultation will begin in late January.

The Campus Vision 2022-2025 reveals the Technology Park at the Mount Helen campus will be expanded through the sale of land to industry.

This will allow work placement and on-the-job training opportunities for students.

Committee for Ballarat chief executive Michael Poulton congratulated the Federation University leadership team for the 'bold', 'courageous' and 'visionary' plans.

He said the changes would be welcomed by Committee for Ballarat and its members and aligned with its focus around jobs, skills and revitalisation of the CBD.

Mr Poulton said using the Mount Helen campus to work with industry to train students was a visionary piece of leadership.

"Federation is well placed, given it is a regional university, to partner with a number of good regional industries that will provide outstanding learning experiences for students," he said.

"As we know in regional Australia there is a skills shortage and being able to align education with industry in a specific way that enhances experiential learning is a great outcome."

Mr Poulton said the revitalisation of the Camp Street campus could become an important community space and 'bring the vibrancy we have been looking for to the CBD'.

"It is bringing together all of the pieces of the puzzle that makes for a vibrant CBD," he said.

Commerce Ballarat board member Rob Croucher said the organisation was keen to support Federation University's plans.

"We are excited by the increased foot traffic this plan will bring and the positive impact this will have on businesses in what has been a very hard two years for particularly hospitality and retail," he said.

"This is welcome news to these sectors."

Have you signed up to The Courier's variety of news emails? You can register below and make sure you are up to date with everything that's happening in Ballarat.