The University of Liverpool is set to become the first in the UK to open a new institution in China, it claims.
The Chinese government has given the green light for the new university in Suzhou, 90km (60 miles) from Shanghai.
Built in partnership with Xian Jiaotong University, the new facility will have its own degree-awarding powers and is set to open in 2006.
Students will also be offered the chance to complete the latter part of their studies in Liverpool.
Vice-chancellor Professor Drummond Bone said the university would not be an outpost but a "genuine co-operative venture".
Professor Bone said there would be cutting edge input from British academics in the degree programmes, which will initially be offered in computer science, electronics and IT.
"These are exciting times for the University of Liverpool and I am confident our new university will help meet the global demand for highly trained professionals," he added.