A new theatre with studios will be built at the city centre campus

Teaching and research currently carried out at the campus, near Wakefield, will be transferred to Leeds.

A new �1.5m theatre with studios and space for seminars will be built at the city centre campus.

University vice-chancellor Professor Michael Arthur said the Bretton site was no longer sustainable financially or academically.

Affection for site

"We recognise the affection in which Bretton is held by generations of staff and students," he added.

"We believe this decision is the best possible for our staff and students, for future generations and for the university as a whole."

The campus was founded in 1949 and specialises in design, music and performance arts.

Graduates include authors Kay Mellor, Colin Welland and John Godber and comedians Mark Thomas and Steve Pemberton.

End of uncertainty

The university has about 950 students at Bretton. Current undergraduates will be able to complete their studies there and those recruited in 2005 and 2006 will move in 2007.

Another 250 students are at the Manygates campus in Wakefield, studying social work. This site will also close in 2007 and be sold.

The university is also in talks with the city council about plans for a cultural collaboration giving students access to the city's new Carriageworks Theatre in Millennium Square, which is due for completion next year.

Student union spokesman Tom Wong said students were pleased with the end of uncertainty surrounding the closure.