Fashion designer Stella McCartney is one of the famous graduates of the London Institute

The London Institute, which includes creative colleges for art, design and fashion, is to be awarded the title of university.

The institute has had its application for the title of university approved by the Department for Education and Skills.

The university will include Central St Martins College of Art and Design, Camberwell College of Arts, Chelsea College of Art and Design, London College of Fashion and London College of Printing.

This arts university for London, which will have a new identity revealed next year, is intended to "enhance London's creative reputation internationally".

It is also expected that the re-launched institution will prove attractive to business sponsors.

Creative capital

The London Institute says that the creative industries contribute �21bn to the capital's output and represent the third largest source of employment.

Among the famous names who have studied at the colleges which will become part of the university are fashion designer Stella McCartney, designer Sir Terence Conran, actor John Hurt and artist Antony Gormley.

"The government's decision is a ringing endorsement of the importance of the arts to the life and economy of London and the nation. It is wonderful news for everyone associated with the London Institute," said Sir Michael Bichard, rector of the institute.

"For over 100 years, our colleges have developed an enviable reputation for excellence. This tradition will be enhanced as part of the capital's new university of the arts."

The colleges are based in 18 campuses across London and are currently providing courses for 32,000 students. The institute has been awarding degrees since 1993.