The University of St Andrews is re-submitting proposals which would see an additional 700 student beds in the town.
The residence will be built on the site of Albany Park, an outdated student accommodation in East Sands which was demolished in 2020.
Scotland’s oldest university previously announced similar plans in collaboration with Campus Living Villages (CLV) in 2019.
However, the Covid-19 pandemic and the rising cost of building materials have made the original plans “unfeasible”.
Revised designs would, nevertheless, increase the number of student beds the development would provide from 672 to 710.
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The University’s chief operating officer, quaestor and factor Derek Watson said the Albany Park development was “key” to a drive to provide more housing for students and “ease the pressure” on housing stock in the town.
Limited stock levels and high demand for rented properties have rents rising across Scotland despite an in-tenancy cap of 3%.
A Citylets report for the first three months of this year attributed a 12.4% year-on-year rise in average rents in the country to a “keen competition for property”.
Mr Watson said: “The development at Albany Park is key to the University’s strategy to provide more accommodation for our students and ease the pressure on housing stock in St Andrews.
“Despite recent volatility in the markets, particularly the construction industry, we have remained committed and optimistic this plan can become a reality.
“If approved, the new Albany Park will provide more than 700 high-quality student beds in an attractive landscaped environment which will improve amenities in the east of the town.
“The development has the potential to revitalise the eastern area of St Andrews and we are looking forward to putting our proposals to the local community and hearing their views.”
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The proposed development is part of a series of significant investments designed to provide additional purpose-built accommodation for students over the next few years.
Public consultations on the updated plans will be held at the Byre Theatre on June 7 and June 28.