University vice-chancellor Nick Saunders signed an agreement with private college operator Navitas yesterday.

The Newcastle International College, to open next year, will be the 10th university-based college opened by Navitas in Australia and provide a means for foreign students to gain entry to university.

Students can either complete bridging course or undertake a one-year diploma in a chosen field and gain entry into the second year of an undergraduate degree the following year.

Students will be recruited mainly from countries in Asia and Africa as well as Europe.

Professor Saunders said it was an important day in the life of the university and a boost to its internationalisation plans.

"We will have international students coming to us but also domestic students will be able to learn from those international students," he said.

The news came after Japanese-based english college GEOS closed its Australian campuses on Tuesday.

Professor Saunders said Navitas was an Australian stock-exchange listed company that had a strong reputation around the world, but said there were appropriate contingencies in the contract.

International student numbers have grown at the university by 30 per cent during the past five years.

The extra students from the college will bring overseas enrolments up to 8000, about one-fifth of its student population.

Professor Saunders said there were plans to augment accommodation and support services to cater to the increase.

Navitas executive officer Rod Jones said the college's small groups and intensive English training helped bring students of different education backgrounds up to university standard.