The three men who will take control of a £250 million investment into Brighton and Hove, the largest in the city's history, have spoken of their determination to work together to achieve outstanding results.

The money due to be spent on the three further education colleges in the city in the next three years dwarves that earmarked for any other project, with the possible exception of the King Alfred development.

The funds, provided by Government but allocated by the Learning and Skills Council, are intended to revolutionise education for over 16s in Brighton and Hove.

Tackling the huge numbers of teenage dropouts in the city - around 700 aged between 16 and 19 - is a major target.

This week the principals of the three colleges signalled their intention to work together on the challenge, rather than to compete as they have done in the past.

They met at City College Brighton and Hove to outline their plans at a time when each was also celebrating a glowing report from Ofsted inspectors.

Chris Thomson, the principal of Brighton, Hove and Sussex Sixth Form College (BHASVIC), in Dyke Road, Hove, said: "This really represents the start of a new era for the city.

"Each of us has been given recognition by Ofsted for what we are already doing and we have been given a fantastic opportunity now to move forward in a way which will be of immense benefit to the whole of Brighton and Hove."

He said the projects proposed for each of the colleges would provide world class facilities for students in more subjects than ever before.

Work costing millions of pounds is expected to begin at BHASVIC this summer which will expand and modernise its 1930s buildings.

The college was rated as outstanding by Ofsted in three categories following an inspection in December and as good in the remaining three.

Mr Thomson said he was delighted by the report but saw it as a position to build from, rather than an end result.

He said: "Excellence is a race that has no finish line."

Phil Harlands, the principal of Varndean College in Surrenden Road, Brighton, said its buildings had been designed for a 500-pupil grammar school 80 years ago and were not suitable for modern needs. Its plans to renovate its facilities are due to be finalised this year and work should start in spring 2009.

The college was praised by Ofsted in December and rated outstanding in two of six categories.

Mr Harlands said: "What this shows is that young people in Brighton and Hove are very well served by the colleges but there is a chance to make them even better."

Phil Frier, the principal of City College, described the funding as a "once in a lifetime opportunity".

His college, which provides most of the vocational courses for the city's teenagers, is set to receive the largest portion of the money to completely revamp its buildings in Pelham Street in the city centre and at Wilson Avenue in Whitehawk.

Initial plans were taken back to the drawing board and updated versions are expected in the next few months with work costing more than £100 million potentially getting underway in 2009. Part of the proposals will be an education centre in Brighton and Hove Albion's new stadium at Falmer.

Mr Frier said: "Between us we have been able to look at everything that needs to be provided and work out how best to do that. With the rebuilding funds we can make sure it is done in the right facilities as well.

"The three colleges working together is very beneficial for the city. Instead of competing to get students to come to our individual colleges we are trying to make sure each individual is taking the right course at the right place.

"Ultimately that will make an important impact on the number of young people who are not in education, employment or training."