Creek Street Christian College will receive about $2.5 million from the state government's Non-Government Schools Capital Fund.
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Works at the college include the demolition of adjacent residential property and the construction of a two storey multi-purpose facility to accommodate the addition of Year 11 and 12 students at the campus.
The state is funding 56 projects as part of the fund, which will create close to 800 jobs during construction.
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Additional funding for the second round of the fund has been brought forward to help stimulate the economy and create jobs.
Successful schools will be able to start their projects within the next six months to help meet growing enrolment demand.
Member for Bendigo West Maree Edwards said the state government promised to upgrade and build new non-government schools and it's keeping that promise.
"Every child, no matter where they live or go to school, deserves the best facilities," Ms Edwards said.
"That's why we're supporting government, Catholic and independent schools with record investment to give our kids the best education."
The government's financial commitment follows on from its election promise to establish a $402 million fund in partnership with the non-government school sector to upgrade and build new schools across the state.
