A multimedia company has announced plans to build the world's largest technology school on the former Littlemore Hospital site. SAE Institute, which describes itself as a world leader in degree-standard audio, film and multimedia education, will spend £12m, if planning is approved.

Managers want the site to become the global headquarters of the SAE operation - the flagship school among 50 SAE Institutes on five continents.

The announcement follows one of the largest commercial property deals in recent years. Last month, RO Developments sold its 40,000 sq ft Littlemore House, formerly part of Littlemore Hospital, to the SAE Institute for a reported £8.9m. The sale came three months after the completion of an extensive refurbishment of the building.

According to SAE, the new campus off Sandford Road will offer state-of-the-art facilities with a number of residential places available for overseas students.

SAE was founded in 1976 by Mr Misner as the world's first audio school. It has since grown to become a network of around 50 colleges in 20 countries, offering courses in audio engineering, digital film, web design and interactive entertainment.

Founder Tom Misner said: "The character and quality of the building and the extensive landscaped grounds will provide an ideal environment for our new training facility and headquarters operation. Oxford is an academic centre of excellence and we are delighted to be choosing this location as our international base."

Louisa Dean, a spokesman for Oxford City Council, said: "So far no planning application has been submitted for this scheme.

"If the site is simply being used as SAE's headquarters, then planning permission might not be necessary."

RO Developments acquired the building and the adjacent two-acre site from Astellas Pharma Europe in November 2005, and started the refurbishment in September 2006, after securing planning consent for an additional 40,000 sq ft on the adjoining site.

Richard Bourne, associate development director at RO Developments, added: "We are delighted Littlemore House has been sold to such a prestigious organisation.

"The building has had a very interesting history and it now has a very exciting future, which will also be good news for Oxford.

"We are proud the restoration and refurbishment has provided the building with a new lease of life."