Derek Fraser says top-up fees could mean a cut in public funding for universities

In a joint statement on behalf of the university and its student union, he said: "The University of Teesside proposes that any university imposing top-up fees should forego its public funding for teaching."

Top-up fees, currently being considered by a group of leading universities, would mean universities setting their own charges for courses.

This could see students paying more than �5,000 a year in fees in addition to tuition fees levied by the government, currently �1,050.

But Mr Fraser said developing this private funding stream would lead inevitably to a parallel reduction in public funding.

"It is inconceivable that if there were increased funding flows from top-up fees, the Treasury would not seek to reduce public funding correspondingly."

He said all universities would suffer financially if a few prestigious institutions introduced top-up fees, bringing a "reduction of funding for the whole sector through the actions of a few".

Top-up fees have been rejected by the government but are still being discussed by the Russell Group of top universities.

They would bring new revenue into higher education by charging something nearer to a market rate for courses.

But Mr Fraser said this approach would be "socially divisive" and mean that more young people would be deterred from higher education because of the expense.

"The university opposes both the philosophy and practical consequences of top-up fees," the joint statement added.

"At a time when students are deciding on admissions to university and when their potential successors are reviewing their future options, the University of Teesside wishes it to be known that it rejects top-up fees and will not introduce them."