The further education college for Southwark has had its Ofsted rating upgraded from 'inadequate' to 'requires improvement'.
They praised the "positive impact that new leaders and managers have had on raising the standards of teaching and the expectations teachers have of their learners".
However the inspection report also notes that "too few students and apprentices achieve their qualifications and the rate has not improved significantly for three years".
Ofsted makes clear that the college's new leaders face an uphill struggle: "They have improved the quality of provision, outcomes for learners and the college's financial health, but, as leaders readily understand, and as confirmed by inspectors, they still have much to do to achieve their objective of providing outstanding education and training for learners."
The findings have been welcomed by the college's management.
"We are all absolutely delighted that the improvements for students and apprentices across the college have been recognised by Ofsted," said principal Carole Kitching.
"I would like to thank all staff who have worked so hard to help turn the college around.
"We already have flagship courses in business, IT and performing arts that have some of the highest success rates in London and now we can clearly demonstrate that all our courses are improving.
"Everyone is determined that we will continue to work hard to make further improvements for our students and our communities."
Chair of governors Chris Bilsland OBE added: "Governors are proud of the significant progress the college has made over the last year.
"Further education really does change lives and we want to be sure that the College in Lewisham and Southwark is offering the very best training and teaching to residents.
"We are also delighted that this inspection report has come out just as we start to unveil our brand new state of the art campus in Southwark which will be fully open for courses starting in September."