SIR Paul McCartney's Fame School is on track to becoming a university after winning higher education status from the Government, the Daily Post can reveal.
It means the Liverpool Institute for Performing Arts can now apply directly for state funding and could join the city's three other universities by giving out its own degrees by 2008.
It is believed to be the first institute to win the designation after setting up from scratch, and the news timely coincides with its 10th anniversary.
Founding principal Mark Featherstone-Witty said: "This is great news. It is what we have been working towards. It's poetic it has happened in our 10th year.
"It means the city now has four higher education institutes - the three universities and us.
"It shows confidence in Lipa's ability to manage itself. We can now apply directly for Government schemes when before we had to approach JMU to do it on our behalf, which sometimes led to a conflict of interests.We have always had a very good relationship with JMU but this means no one has to compromise.
"It is the first time a brand new institution has achieved this. Student achievement always comes first, things like Sandi Thom getting to number one are bigger celebrations. But in terms of bureaucracy it will be much better."
Lipa opened in 1996, offering undergraduate degrees in the performing arts, in acting, music, and dance, and non-performance degrees, in management, sound technology and theatre, technology and design.
The building, which was Sir Paul's former school, took £20m and five year's work to complete.