A college is to sell fields to housing developers to pay for an extension scheme.

Varndean College in Brighton says it needs the expansion scheme to cope with rising student numbers.

It is applying for planning permission which will allow it to sell three acres of grounds to developers.

The college says the Government will meet only 35 per cent of the cost of the estimated £5 million expansion project.

Principal Alan Jenkins expects residents to object to houses being built at the college, off Surrenden Road, but said he had been forced into selling.

However, concerns have already been raised about overdevelopment of one of the few remaining large green spaces in residential Brighton.

The college is preparing to cope with a surge of about 450 students in two years when there will be a 'bulge' in Year 8 and 9 students across Brighton and Hove.

The Learning and Skills Council has agreed to meet 35 per cent of the cost of building classroom extensions, a new theatre and dance unit, more parking and a new entrance.

Part of the scheme involves relocating special needs provision for 16 to 18-year-olds from Downsview School and Hillside School to a purpose-built unit at the college.

The Government is pressing home the need for further education to be encouraged with special certificates for students completing vocational courses.

Mr Jenkins said further education was vital for the future prosperity of the city but the college, which has 1,000 full-time and 1,500 part-time students, was already crowded and having to turn students away.

He said: "We have got to find 65 per cent of the cost. We are also drawing up a fund-raising strategy and there is the potential to borrow from the banks but we can't afford to do that really. Any accumulated reserves are spent on staff and that is why we have a good reputation.

"I am sympathetic to possible concerns of residents but my prime responsibility is to ensure the educational development of the college. We regret the only way forward financially, given we don't have the resources, is to sell land. It is not something we want, it is something we have been driven to."

Ward councillor Juliet McCaffery said she was keeping an open mind but was worried about overdevelopment of green areas in the city.

She said: "Local people are being informed. It is a beautiful area and there are concerns. It is a very successful college and needs space.

"I think there is a difficult issue about using up green space we have in the city. I am concerned about it and I have expressed my concerns about the development on this particular piece of land but I also appreciate the college needs to expand."

The land the college hopes to sell is bounded by Draxmont Way and Surrenden Road.

Mr Jenkins said it was still possible private funding could be raised, or the Government would change its policy to give more money, so the land would not need to be sold.

The college was the top Sussex state school or college in the 2000 A-level league tables, is currently 13th in the league table of all colleges in Britain and has a waiting list of 120 for the September intake.

It is staging public exhibitions when it will unveil its plans from 10am to 4pm on Friday and Saturday and from 2pm to 8pm on Monday, July 9, and Tuesday, July 10.