South West TAFE will wind up its operations and farm industry courses at Glenormiston by March.
CEO Peter Heilbuth said during the past few years the students participating in programs at Glenormiston had declined.
"While our students and staff have benefited from access to the College over the years, more recently demand for both residential and on-site training at Glenormiston has dropped significantly," he said.
Seven staff are expected to lose their jobs.
The TAFE took over the college's operations from the University of Melbourne at the start of 2006.
Premier Denis Napthine said the decision was part of the changing model of learning with more courses being offered online.