Liberal group leader Cllr Steve Radford said the move would be “a disaster for Liverpool”.

He warned of a “brain drain” from the city if fewer local people studied at the university, claiming students from overseas would be more likely to take the skills and expertise they learn in the city back home.

Cllr Radford added: “It would be disastrous for Liverpool.

“It will discourage young people from the city from getting qualifications.

“This is the kind of move which will create a spiral of decline.

“If the costs go up too much, then the courses may lose numbers and some may have to close.”

The University of Liverpool last night said around 3,000 of its students – a quarter of its UK learners – came from families with an income of less than £20,000.

It also said it was committed to improving learning throughout Merseyside through a number of academies it co-sponsored in deprived areas.

A university spokesman said: “The number of UK and EU students the university can admit is strictly controlled by government.

“In line with government policy, all international students who are recruited are additional to this quota.

“It would therefore be impossible for an international student to take a place intended for a UK student.

“The university is already recognised as one of the UK leaders in widening access, committing more than £6m each year to bursaries and scholarships and providing additional education opportunities to some 8,000 young people.

“We will continue to strive to ensure people from all backgrounds have access to a world-class education.”