The University of Worcester will build a new business and science park as a joint venture with a property firm.
Wrenbridge, a commercial development and investment company, will work with the university to develop 10 acres of the Grove Farm site, near St John's.
Plans for the finished design of the park are expected to be submitted for approval in the autumn.
The university said it anticipated the finished business park will employ up to 2,000 people.
Dr Martin Doughty, from the University of Worcester, said the park will incorporate scientific research laboratories, and businesses connected with the university's work.
The university bought the 47-acre site from the supermarket firm Tesco in 2009 for an undisclosed fee.