The polytechnic has operated a learning centre in Mosgiel since 2004, offering introductory computer courses and National Certificate programmes.
However, government cuts to community education funding have put the city's three centres under threat and Mosgiel's is considered the most vulnerable.
Polytechnic chief executive Phil Ker said prior conversations with the council about partnerships came back into play and the idea of moving the learning centre to the foyer of the Downes Room, within the Mosgiel Library, was raised.
"Overseas, there are a lot of really good examples of shared facilities between community education and council bodies. It works really, really well," he said.
Further investigations found the foyer met the polytechnic's needs and an agreement was reached it would not be charged for using the space, as an acknowledgement of the learning centres' contribution to the Dunedin Digital Strategy.
"I think it was pretty attractive to both parties because the city has adopted a digital strategy and a key element is building the capabilities of the community around digital literacy," Mr Ker said.
A report outlining the proposal will go before the Mosgiel Taieri Community Board at a meeting on Tuesday, before it goes to the Community Development Committee for consideration.
Other options for relocation outlined in the report were to refurbish staff facilities within the library to make room for the learning centre; using an empty classroom at Taieri College; and space within the Coronation Hall.
However, all these options had either cost, convenience or space issues.
Mr Ker said if the idea was accepted, "we would want to go straight away".
"It's a way for the city to ensure, as a partner, that the citizens of Mosgiel can access computer training," he said.
Mosgiel Taieri Community Board chairman Bill Feather did not want to comment on the proposal before the board met to discuss it.
