Plans to merge colleges in Southampton, Eastleigh and Fareham have taken a step forward.

City College Southampton could join with Eastleigh College and Fareham College as soon as August 1 under proposals now subject to public consultation.

The merger comes after City College faced intervention over its financial instability - requiring nearly £8m in emergency Education and Skills Funding Agency cash.

Current principal Martin Sim was brought in to improve the institution, currently rated requires improvement by Ofsted.

The proposals - open to public consultation until May - would see the corporations of City College and Eastleigh dissolve, with their assets and liabilities moving to Fareham College, led by principal Andrew Kaye.

Mr Kaye would become chief executive of the new South Hampshire College Group.

Students would continue at their current campus.

The names and brands of the three colleges would not be changed.

Previous merger talks have collapsed. This latest bid was recommended by the Department for Education in May last year.

Mr Sim said: "We are excited by the huge benefits that this three-college merger will bring to students, businesses, our local communities and staff. By uniting our resources, our expertise and our existing centres of excellence, we can enhance the range of provision and the quality of courses throughout Southampton and the surrounding areas.

We can also create seamless pathways into higher levels of study and work, increasing the supply of skills, meeting employers’ needs more effectively and supporting our region’s economy to grow and succeed.

This does not mean we would lose our long-established identity, nor our focus on supporting our local community. We would continue to retain our existing local brand."

Mr Kaye said: "Our ambition is to create a new and vibrant college, better able to meet the economic and social mobility challenges that the region faces."

Eastleigh College CEO Paul Cox said the merger would benefit employers.

He said: "The merger will be supported by additional inward investment which will enable us to enhance our existing resources and facilities and further develop our curriculum offer — ensuring we collectively deliver the highest quality training and courses, tailored to employer and student needs."