The film school at the University of Wales College Newport is on a location hunt for major expansion, it was announced this week.
Clive Myer, director of the International Film School of Wales, at UWCN's Caerleon campus, said the Welsh Development Agency was now backing its hunt for a nearby site on the M4 corridor.
The expanded film school would offer opportunities for spin-off small and medium enterprises, he said.
Paul Murphy, secretary of state for Wales and MP for neighbouring constituency Torfan, praised the school as the "jewel in the crown" of Welsh culture and enterprise.
Course leaders and graduates have won critical acclaim and significant box-office successes in recent years.
The school itself has been granted core funding for two years from Welsh television, as well as an international award for media training.
According to Mr Murphy, the film school was capable of becoming an "economic magnet for post-devolution Wales".
The school's new plans include a doctoral degree in practical film-making.