The �3.8m donation has proved to be hugely controversial

The vice-chancellor of the university, Sir Colin Campbell, said it represented "an investment in an area of huge importance".

The donation has proved to be hugely controversial among anti-smoking groups and cancer research charities.

When the decision was announced in December, Clive Bates, director of the anti-smoking pressure group, Action on Smoking and Health (Ash), said: "The university ought to be absolutely ashamed of itself"

The Cancer Research Campaign has decided to pull out of raising money for the college's new research laboratory.

Forest director Simon Clark admitted the university might be embarrassed by the award.

I'll be sorry if Nottingham University felt bad about it, but that's a sign of the times

Forest director Simon Clark

He told BBC Radio Nottingham: "I'll be sorry if Nottingham University felt bad about it, but that's a sign of the times.

"We're very happy to give it to them partially because we understand their position.

"We get a lot of money from tobacco companies to run Forest. I'm not ashamed at all to receive money from the tobacco companies.

"In a civilised society there are two sides to every debate."