Cambridge has launched a fund-raising drive

The university recently launched a campaign to raise �1bn by 2012.

Cambridge's board of scrutiny warns that some of the university's "premium services" might be at risk.

But the university said it was confident the target would be reached and denied suggestions that one-to-one tutorials would go.

The chairman of the scrutiny board Nick Holmes said: "It's common sense that if you want to have better than average facilities then you have to pay for them.

"If we can't raise more funds, in the end we will have to decide what we cannot afford."

The scrutiny board - set up 10 years ago - acts as a watchdog for the way the university is run and comments on this to Cambridge's governing body.

In its 10th report, the watchdog estimates that since 2000, Cambridge has used up �50m of reserves keeping afloat.

'Precarious'

In three years' time, Oxford and Cambridge will lose the extra college fees they get from the government and will be funded along the same lines as other universities. This extra funding will have been wound down over 10 years.

The report said much had been done to reverse the deficit but there still remained a great deal to do.

"Although improved, the university's financial health still remains precarious, and further efforts are needed to ensure that the improvement continues," it said.

It went on: "If this extra income does not rise at least at the same rate as student and staff numbers then it will be difficult to maintain the premium services that the university and colleges provide (and which are essential to preserve the character of Cambridge)".

A spokesman for the university said Cambridge was committed to keeping the tutorial system.

He said: "The current supervisory system will remain integral to the world class quality of a Cambridge education. However, it comes at a price.

"We are working hard to rebalance our sources of funding and to achieve a sustainable surplus. This includes the launch of our �1bn anniversary appeal."