It will also occupy two sites across the road with a total land area of 23ha.
It will move to its permanent home in 2013.
The new university will emphasise entrepreneurship and inter-disciplinary learning.
This will increase the number of university places in Singapore to 30 per cent of each year's cohort by 2015, up from the current 25 per cent.
This means another 2,400 places to be equally divided among polytechnic, graduate
BEST OF EAST AND WEST
'Students of the new university would benefit from the best offerings of the East as well as the West, and experience a truly global education. It would give the new university a distinctive character.' - An MOE spokesman