There's ongoing uncertainty over the future of the Dapto TAFE campus.

Institute Director Di Murray said the final staff at the campus will leave on January 22.

"So what's happening next Friday is that the school education people, the support units in assets and ICT who have been on that site for quite a period of time, are in fact moving off that site into Department of Education premises," Ms Murray said.

"They're the corporate unit that has been operating out of Dapto TAFE.

"TAFE is now separate to the Department of Education and Training and those people, their last day is next Friday," she said.

Ms Murray said a range of options are now being considered for future use of the empty building.

"The facility is still a government facility and it's still managed by TAFE Illawarra," she said.

"Obviously we'll keep the campus maintained. We'll ensure that its kept in good order as we have now.

"There are options that are being investigated for what's a good use of that site. What's the best way for us to use the funds, over $600,000 a year that have been maintaining a site where there are no students," she said.

The ABC understands NSW Police are in negotiations to use part of the Dapto campus for an active armed offender training facility.

However New South Wales Skills Minister John Barilaro said the government is yet to make a decision about what to do with the empty campus.

"No decision has been made on Dapto," Mr Barilaro said.

"The worst thing we can do right now is talk about campus closures at a time when we have a peak period of enrolments, at a time we should be talking confidently about TAFE in NSW.

""The truth is the government is looking at its assets of TAFE. TAFE is looking at its assets," he said.

Shellharbour MP Anna Watson claims the state government has purposely run the campus down, cutting courses and forcing students to enrol elsewhere.

"What the state government are doing is nothing short of generational theft and they should be hanging their heads in shame," Ms Watson said.

"We have watched over the last 5 years, Dapto TAFE having over 700 students and over a hundred teachers.

"We had an IT department, a canteen, a library and it's just slowly been gutted to the point where there are no students.

"This is just the government's intention to privatise and commercialise public education and I think it's a disgrace," she said.