The federal government will spend $2.5 million to establish a main campus in Wangaratta and satellites in Mansfield and Corryong, as one of 26 sites in the Regional University Centres Program.

Then-Education Minister Dan Tehan made an election promise to add Wangaratta to the list of sites in April, 2019.

Education Minister Alan Tudge said the centre would "enable local students to pursue tertiary education and training opportunities without having to relocate".

Indi MP Helen Haines was glad to see the project move forward but said the $2.5 million was "significantly less" than the $4 million announced pre-election.

"However, I'm confident the model will serve the needs of our community," she said.

"I congratulate the Ovens Murray Regional University Centre Community Working Group, and the newly formed CUC Ovens Murray Ltd, chaired by John Joyce, for their commitment to ensuring that this project is truly community owned.

"At the former Minister for Education's invitation, I worked closely with the Ovens Murray CUC Board as negotiations progressed and met with the former and current Minister for Education and his office several times to get to this outcome.

"The CUC Ovens Murray Board can start recruiting.

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"The main campus will be based at Cusack House at the GOTAFE Wangaratta Campus, close to transport and the bustling city centre.

"It'll undergo a major revamp with capital works to start next financial year."

Dr Haines said a satellite hub in Corryong would reduce barriers of distance.

The model will build on existing offerings of GOTAFE and Charles Sturt University.