Manchester University says the extra income will help all students

Manchester University, which has 31,000 students, can charge foreigners full course costs - about eight times what UK undergraduates currently pay.

Liberal Democrat education spokesman Phil Willis said this could lead to young people from Britain missing out.

But the university said having more foreign students would fund better research and teaching.

Aspirations

Manchester University was formed by the merger of Victoria University of Manchester and Umist last year.

Its strategic plan predicts "progress towards a targeted trebling of revenue from fee-paying overseas student enrolments in real terms by 2015".

It adds: "Manchester will not be able to offer students an outstanding educational experience or achieve the research standing to which it aspires without strengthening its resource base by expanding fee-based taught masters programmes and taking advantage of changes in government policy on fees for domestic students."

But Mr Willis said: "What we are seeing is the first signs of the market appearing in higher education.

"Universities are saying, 'where is our place in the market and how do we fund our operation?'"

University fees in England are currently charged at a flat rate of �1,150 a year.

From 2006, these will become variable, with a maximum charge of �3,000.

'Cash cows'

National Union of Students spokesman Benson Osawe said: "It is wrong for the university to see international students as cash cows to make up the shortfall in home student funds."

Paul Layzell, vice president for communications at Manchester, said the university was "fully committed to the home market".

He continued: "We remain the UK's favourite university with more undergraduate applications than anywhere else in the country.

"In fact, in areas where we are under-represented we are working to build the number of UK-based students."