Two Dorset colleges plan to merge under one umbrella organisation.
Weymouth College and Kingston Maurward College have announced plans to become Dorset College Group.
There will be a public consultation in Spring 2024 and the schools hope the merger will improve finances and allow them to retain their sites.
It is not yet known how the plan, which could occur before September 2024, would affect staffing at the organisations.
In a joint statement, the colleges called it "the biggest strategic change in further education in Dorset since the Second World War".
This decision comes following discussions with the Department for Education (DfE), the Further Education Commissioner and between the two college boards.
Luke Rake, principal at Kingston Maurward College, said: "The financial situation in education is challenging."
He added the new group was "an exciting opportunity" and "makes good financial sense and ensures high quality land-based education continues for the county and its neighbours".
Julia Howe, principal at Weymouth College, said: "[With] any potential merger there are vulnerabilities.
"We have to be efficient but we'll look at all the ways that we can do that and ensure that we minimise those potential redundancies that staff will be undoubtedly considering or concerned about."
