The Canberra Institute of Technology will close its Woden campus this year, with the future of the site up in the air.
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The closure was foreshadowed in 2015, after the Tuggeranong campus opened in November.
In budget estimates on Tuesday, Higher Education Minister Meegan Fitzharris said the CIT Board recently recommended the campus close soon.
About 130 students and staff remain at the campus.
Students and staff were gradually relocated to CIT's other campuses in 2015 and 2016.
CIT's music program will be the last department to move, with the faculty heading to a refurbished section of CIT Reid in the second semester of this year.
Its students will continue to be trained in workplaces across Woden, including the Canberra Hospital.
The closure is part of the training institute's campus modernisation strategy, which sees it shed surplus assets and expand its footprint online.
Ms Fitzharris said the government was yet to decide what would be done with the site, but it would remain zoned for community use.
"In terms of the future use of that site, that is not being determined except for the fact it will remain a community space. Exactly what that means will be the subject of further work and consultation over the next six months particularly," Ms Fitzharris said.
Ms Fitzharris said CIT were looking at ways to expand their reach across Canberra, but added "it's not likely to be a physical presence".
She said while there were no university campuses on the south side, Canberra was "incredibly well-serviced" in the field of tertiary education for a city of 400,000 people.
Chair of the CIT Board Craig Sloan said there would be no loss of courses or jobs because of the closure.
"It's not like we've got thousands of staff sitting on that campus at the moment because it's surplus to our needs," he said.
"Part of the campus modernisation strategy was always going to be reducing our footprint and doing multi-storey purpose built facilities rather than occupying such a large space on our current site.
"We are working with the minister and government to transition that land back to the government for their consideration of what to do with it in the future."
Woden Valley Community Council president Fiona Carrick said she would like the site to remain in community hands.
"There are various groups keen to use it, playgroups, gymnastics, the University of the Third Age," Ms Carrick said.
"Woden is densifying and should we ever need to open up Chifley Public School again there are lots of community organisations in there, the YMCA, they could go to the old CIT site."
Ms Carrick said the proximity of the campus to the hospital could also be a plus.
"It's right next to the Canberra Hospital so they could use the site for health and education organisations that complement it," she said.
The closure comes amidst falling student numbers.
CIT fell nearly 2000 enrolments short of its 2017-18 targets and its 2018-19 targets are only 500 students higher at 11,700.
However CIT chief executive Leanne Cover also ruled out the closure of other CIT campuses at Reid, Fyshwick, Tuggeranong and Bruce.
Chief Minister Treasury and Economic Development Directorate deputy-director general Kareena Arthy said there were growing opportunities with the memorandum of understanding between CIT and UNSW, including for student housing on the Reid site.
"We're looking very much about what facilities are required to support a significant student base on there and certainly part of that consideration is the provision of student facilities and student accommodation," Ms Arthy said.
"That is one of the major attractions for the site that is now occupied by CIT and the car park opposite, it provides incredible opportunities for a greater bank of student accommodation within the city precinct."
However Mr Sloan said they had been "very focused on protecting CIT's brand" during the negotiations.
