Two South Island polytechnics are seeking government approval to merge.
Christchurch Polytechnic Institute of Technology and Aoraki Polytechnic have submitted a business case to Tertiary Education Minister Steven Joyce.
Aoraki Polytechnic has been struggling for several years with falling enrolment and financial losses.
Its main campus is in Timaru, but it has outposts in Oamaru, Dunedin and Ashburton.
The two polytechnics plan to create a new Canterbury-wide organisation.
The Minister will consider the proposal and seek public submissions before making a final recommendation.