The move, which has yet to be finalised, could see the Grimsby Institute Group transfer its Lady Edith’s Drive and Westwood bases to the University of Hull site.
A spokesman for the University of Hull said: “The university is still considering all the options for the future of the campus. Our first priority is to our staff and students and keeping them informed about any developments.”
The Scarborough News believes an announcement could be made as soon as this week about the college sites.
The campus was due to be transferred to the Hull College Group in 2017 but it sensationally pulled out of the move before Christmas, leaving staff and students in limbo.
The Grimsby Institute Group and Yorkshire Coast College declined to comment directly on the potential relocation.
A spokesman said: “Yorkshire Coast College, which is part of the Grimsby Institute Group, are currently reviewing potential opportunities to further develop technical and vocational provision for further and higher education in the area.
“We are committed to providing inspiring, innovative and outstanding teaching and learning environments, ensuring our learners continue to be at the forefront of everything we do whilst meeting the needs of the region’s employers.”
Last year, Yorkshire Coast College announced an ambitious £23 million plan to build a new college in the centre of town, on the site of the Dean Road Depot.
This plan appears to have gone onto the back burner when the Filey Road campus became available once more.
Yorkshire Coast College were one of the original bidders for the campus before it Hull College Group were announced. Coventry University, which is now building a new establishment as part of the Weaponness project, was also in discussions before partnering with Scarborough Council.
Should the college move to Filey Road it would be a welcome boost for landlords, who feared that flats and student accommodation would sit empty when the final group of University of Hull students graduate in 2017.
One landlord, who did not wish to be named, said: “If the Filey Road Campus is left empty then it would be catastrophic for the town.
“Buildings and flats would be sat empty, restaurants and other businesses would miss out on the student income.
“I just hope there is some news soon.
“One of my tenants told me that Yorkshire Coast College was moving to Filey Road, he goes to the college. It would seem like a good fit for an established name in the town to take it over.”
The news is the latest development in a complete overhaul of education in the borough.
The new Scarborough University Technical College, a specialist business-led facility for 14-19 year olds at Weaponness, is set to open later this year, alongside the Coventry University Scarborough Campus.