It started initial preparations to become independent from John Moores University, which now accredits its degrees, last year.
But from next month it will officially become a higher education institute, allowing it a direct funding relationship with the Government.
Its degrees will still be awarded through JMU but by 2008 Lipa hopes to have full university status.
A spokeswoman for JMU said: "For LIPA to achieve formal higher education institute status is a great achievement for them, LJMU and the city of Liverpool."