Development of the new Anderson High school and the Halls of Residence building is set to begin at Staney Hill.
Both the four-storey school, which can accommodate up to 1,180 pupils, and the three-storey, 100-bed residential building, were designed by Ryder Architecture.
The project has reached financial close and will be funded largely by the Scottish Government through the Scottish Futures Trust (SFT)
The council development is being delivered by hub North Scotland (hNS).
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Main contractors Morrison Construction are now onsite, having started its site establishment work and will soon begin its main earthwork operations.
The high school is set to cost £42.01 million, while the new Halls of Residence will cost £13.74 million.
Two thirds of the funding for these will come from the Scottish Government through SFT.
Additional works at Clickimin Leisure Centre will cost approximately £3 million, which will be principally funded by the council.
Angus Macfarlane, Chief Executive of hNS: "This is a vitally important step for the new Anderson High School project and is of great significance to the staff, pupils and community it will serve."
Chair of the council's Children's Services Committee Vaila Wishart said: "The new school will be a real asset to Shetland, and bring enormous educational benefits to our young people.
"I'm confident that hub North Scotland will deliver a facility for Shetland which we can be proud of for many years to come."
(LM)
