An artist's impression of the new training centre in Machynlleth

It will cater for people living in the Machynlleth area and open next year.

The 400 sq m two-storey building will be built on the site of an old canteen at the town's Ysgol Bro Ddyfi secondary school.

The Welsh Assembly Government has contributed �744,000, with the council making up the difference.

Powys Council said it would "revolutionise" learning in the area and would house a sixth form study centre, the local authority's telecentre, a customer service point and the Powys Training organisation.

People enrolled on part-time vocational courses will also study there.

Councillor Gwilym Vaughan, chair of the group responsible for the project, said: "This is an exciting development for Machynlleth and its surrounding area and will create a wonderful learning opportunity for our young people."

Skills Minister John Griffiths said it would allow people in the Dyfi Valley to continue their education in their community.

He added: "It is a great example of where innovative ideas and new investment can bring a new life to schools in rural areas to the benefit of the whole community".