LIVERPOOL University could go “into decline” unless it enters into a major collaboration with Lancaster, an internal report warns.

The study suggests that without teaming up to create a shared research institute, the city’s university could slip further down the rankings and be overtaken by ones from “emerging economies” overseas.

While the universities insist the move does not represent a merger, a report sent to all staff refers to the new arrangement as “LLU” (Liverpool – Lancaster University), with Liverpool claiming that the move would enhance research, student experience and international standing.

The report states: “The major challenge facing Lancaster and Liverpool, assuming they wish to remain globally competitive research-intensive universities, is how might they enhance their research power.

“Collaboration might bring with it other benefits such as the development of new niche areas of teaching and learning.”

In his memo to staff, vice-chancellor of Liverpool Sir Howard Newby said: “This is an exciting development for both universities, and has the potential to create a step change in the performance and profile of both institutions, both domestically and globally.”

The “green paper” report, which follows a study by the vice-chancellor of Oxford University, Sir Colin Lucas, suggests that while Liverpool has a number of research areas which Lancaster does not – such as medicine, dentistry, veterinary science and engineering – there are “a dozen subject areas in common”.

Professor Newby adds: “In making the case for closer collaboration, the paper recognises that both Liverpool and Lancaster are successful research-intensive universities with ambitions to consolidate and improve their standing among the world’s leading institutions.

“The closer collaboration under discussion builds on the position of strength each institution enjoys, and focuses on ways in which we can sustain excellence in the longer term.

“We are clear that we will only pursue the collaboration if it adds value to both institutions.”

Currently, Liverpool University stands 18th in the UK “research power” rankings, while Lancaster ranks 23rd. The collaboration between the two would, they forecast, rocket a new LLU well up the table into 7th position.

The report suggests a key area of joint working for the two universities could be international expansion.