Tameside college in Greater Manchester is classed as being "highly successful" by inspectors who judged leadership and management as "good".
John Carroll, Tameside's principal, said he hopes the report will help to restore confidence in the college sector.
Last month David Bell, chief inspector, called the failure rate of colleges "a national disgrace" after 11 out of 70 general and tertiary colleges inspected in the last academic year were "inadequate".
Mr Carroll said: "At a time when doubts have been cast upon the quality of provision in general further education colleges, this report should boost confidence.
"Our average grade profile puts us within the elite 8 per cent of colleges quoted in the Ofsted report Why college's succeed."
Tameside is the second of the four general FE colleges to receive a grade two "good" rating for leadership and management in the current academic year.
Bedford college, where Ian Pryce is principal, won the same rating in a report published last week. Inspectors judged provision to be "good" in seven curriculum areas and "satisfactory" in four.
Two other colleges, Skelmersdale in Lancashire and Redcar and Cleveland in Cleveland, were both rated "satisfactory" for leadership and management.
Of four sixth-form colleges inspected since September, one has been rated "outstanding" and three others classified as "good".
Winstanley college in Wigan, Lancashire, was rated "outstanding".
Huddersfield New college in Yorkshire, Long Road in Cambridge, and Bilborough in Nottingham have been rated "good".
For a college to be rated "outstanding", leadership and management must be outstanding. A college is judged "inadequate" when it has unsatisfactory provision in one third or more of the curriculum areas inspected or leadership and management are less than satisfactory.