The Learning and Library Hub will be a state-of-the-art facility for the whole community, replacing the current Warrnambool Library and the South West TAFE library.
It will be more than four times larger than the current library and feature study and meeting rooms, exhibition and display areas, a digital media zone, computer areas and a cafe.
The Victorian Government has contributed $16.3 million towards the project, Warrnambool City Council $3.12 million and South West TAFE $830,000.
The project is now out to tender with completion expected mid-2022.
"The Learning and Library Hub will provide a fantastic opportunity for people of all ages and abilities within the Warrnambool region to gather, read, explore multimedia opportunities and above all, to learn," Cr Jellie said.
"Nestled in the heart of a learning institution and within a cultural precinct that includes the Lighthouse Theatre and the Warrnambool Art Gallery, this library will immerse people in a wonderful environment that is conducive to lifting people sights, to building their aspirations.
"We are confident that it will have a positive impact on our city’s education attainment levels."
Through the Victorian Government's Big Build Apprenticeships program South West TAFE construction students will gain real-life industry experience as they help build the $20.25 million facility, working alongside professional builders, plumbers and electricians.
Local apprentices and trainees from South West TAFE will comprise 10 per cent of the construction workforce.
The Big Build initiative will provide a pathway to the workforce and support employers by enhancing the pool of highly skilled workers in Victoria.
"Big Build Apprenticeships will give the next generation of apprentices and trainees the practical experience they need to get rewarding and well-paid jobs across our major infrastructure projects," Ms Tierney said.
Mr Fidge said the library project was an "incredible opportunity for construction students and works alongside our vision to provide life-long learning and the very best opportunities to everyone in our community."