Cambridge University has a partnership with the Massachusetts Institute of Technology

"It would be a two-way street, with both parties able to benefit from each others' research," said a spokesperson for Oxford University.

As an example, Oxford's scientists might be able to benefit from Princeton's computer laboratories.

And among the areas which might be further developed under the partnership would be nanotechnology - in which scientists work on a scale that can be measured in billionths of a metre.

International competition

Although talks are in progress, nothing has so far been signed. Oxford University says that any arrangement with Princeton will not rule out deals with other universities - raising the prospect of further partnerships.

Such link-ups have allowed leading universities to tap into research networks on either side of the Atlantic and to use such co-operation to keep pace with international competition in science research.

Last year, Cambridge University signed a deal with the Massachusetts Institute of Technology, designed to assist in taking commercial advantage of scientific research.