The institution will be based in Shrewsbury, although the precise location of its campus and student accommodation is yet to be decided.
It will initially be known as the University of Chester Shrewsbury Institute – and within10 years it is expected to become a free-standing university in its own right.
More than 20 courses have been set up and will be made open to applications for students in the next few weeks.
Chester University has signed a Memorandum of Understanding with Shrewsbury Sixth Form College to allow both institutions to work closely together.
It was signed as Professor Tim Wheeler, vice-chancellor of the university, last night opened the college's English Bridge campus in the former Wakeman School in front of around 50 invited dignitaries and students.
It is hoped a small research and postgraduate presence could be in place in the town by the end of this summer.
Undergraduate degrees will focus on four main areas – bioscience, health & the environment; sustainable business & community development; design, heritage & the built environment and social & public sector innovation.
For more see Friday's Shropshire Star