Queen's University has decided to close down its campus in Armagh.
The senate, the university's ruling body, took the decision because there were far fewer students taking courses at the campus than had been anticipated.
It announced it would not be renewing its lease on the Armagh building when it expires in 2005.
The decision followed a report on the initiative, which was launched 10 years ago. It found the costs were too prohibitive and student numbers had fallen short of expectations.
The campus was opened in an old hospital building in 1996. The university had hoped for more than 1,000 part-time students but currently has fewer than 100 taking degree courses.
The university said it would make arrangements to move students to Armagh College of Further Education so they could complete their courses.
It added that arrangements would be made for the redeployment of staff.
Queen's University vice-chancellor, Prof Sir George Bain, insisted students attending the campus would not suffer from the move.
"We are only talking about the students doing the BA in general studies, because the other students are all on courses lasting a year or less."
Sir George said staff would sit down with students and discuss the future.
"Either we will have to send lecturers to Armagh or there will be lecturers from the further-education college that will help out or we will have to have travel bursaries to bring students into Belfast," he said.
An SDLP Assembly member for Newry and Armagh, Mr Dominic Bradley, said he regretted the decision to close the campus, which he said was providing a valuable service for the border counties.
"The only glimmer of hope in this otherwise dismal piece of news is the fact that Queen's is to further develop its partnership with Armagh FE College," he added.