The Government has been called on to "urgently invest" almost €80 million to relieve current "chronic and serious overcrowding" in the National College of Art and Design.
The Dublin-based college says it desperately needs the investment not only to ensure progress but to bring the learning environment conditions up to par with its competitors.
The Director of the National College of Art and Design (NCAD) has appealed to the Government for capital funding to urgently expand and improve its campus facilities.
Mr Colm O'Briain says the college is now refusing places to third-level students and will have to cap its student intake, despite growing demands.
The NCAD drew up a campus development plan in 2001 in which it proposed a public private partnership - the first institution under the Higher Education Authority (HEA) to go this route.
Mr O'Briain told The Irish Times that detailed costings submitted to the HEA earlier this year show some €76 million is needed to carry out vital work at the Thomas Street campus. It includes new workshops, extending the library and building student residences. A priority is building residences for 300 students.
The HEA said that a report on capital funding in the third-level sector has been completed at the behest of the Minister of Education and Science, Mr Dempsey, and the matter now rests with the Department.
A spokesperson of behalf of the Minister said: "The NCAD has been looked at as part of the HEA's report on capital expenditure for third-level institutions.
"The report is currently with Minister Dempsey and he stresses all aspects of that report will be given full and due consideration. Beyond that we cannot comment on any specifics until that consideration has been given to the report."
The proposed expansion is to the west of the existing campus, over the existing college car-park and opens spaces.
However, it is believed that if the expansion on this site falls through, the college will move out of the capital.
"The last investment from the Government was in 1997 when we built the School of Design for industry, which allowed us to bring other departments into Thomas Street to create a consolidated campus," Mr O'Briain said.
"We have not had any capital injection into the college since then and we are bursting at the seams.
"We desperately need Government support if we are to expand and improve our facilities and increase our intake of students."