One of Australia's top universities has declared it will no longer increase student enrolments, citing a threat to quality posed by further expansion.

Key points: ANU ends years of "substantial" enrolment growth, particularly among international students

ANU ends years of "substantial" enrolment growth, particularly among international students The move follows a freeze in Government university funding

The move follows a freeze in Government university funding Fee revenue has driven income growth in recent years

The move ends a period of rapid growth in international enrolments in recent years.

The vice-chancellor of the Australian National University (ANU), Brian Schmidt, told reporters in Canberra on Monday the university had reached a size "which I think is appropriate".

"If we get any bigger, we will not be better," he said.

"The university is at a size of roughly 20,000 full-time students and so we're not intending to grow, both international or domestic."

The move ends years of growth in student numbers at the university, particularly among international enrolments.

Between 2013 and 2016, the number of international students increased from 5,590 to 7,425.

That represented a rise of 1,935 — more than double the 813 increase in domestic students over the same period.

Nationally, international higher education student commencements have grown from 187,000 in 2013 to 319,000 in 2018.

Professor Schmidt's comments follow a call to investigate a national cap for international students from Labor's employment spokesperson Brendan O'Connor due to the impact of students on the labour market.

"What's happened is we've seen a 200,000 increase in applications since the election of this Government federally," he told Sky News on Sunday.

"And therefore I think we need to see whether we could either cap the scheme or make sure it's being used properly for the purpose it was intended."

Income growth tied to fees

Professor Schmidt said both domestic and international student enrolments had grown "substantially" in recent years.

The university's annual report shows an increase in fees and charges is the major driver of increasing income.

ANU's recent income surge has been driven by a growth in fees and charges.

Education Minister Simon Birmingham introduced a savings measure last year, worth about $2 billion, that will mean the Commonwealth contribution for most undergraduate courses will remain at 2017 levels throughout 2018 and 2019.

That makes international student numbers an even more important lever available to university administrators trying to balance the books.

However, Professor Schmidt said ANU was "about as big as it can be right now".

The inner Canberra campus is currently undergoing major construction to improve its facilities.

Samuel Lee, a 22-year-old law student from Singapore currently studying at ANU, said he mostly socialised with other students from Singapore, but he enjoyed the student mix at ANU.

"It's always good to have more viewpoints, more different cultures with people outside of your immediate social group," he said.

"ANU is kind of unique in that the majority of students who come here may not necessarily be Canberra locals.

"That's really what makes ANU more warm."

ANU's 2016 internal survey reported 92 per cent of domestic students would recommend the university, up from 88 per cent in 2014.

Among the international cohort, the score has remained at 87 per cent over the same period.

Professor Schmidt had been speaking to reporters to highlight a gift of indigenous art worth more than $9 million to the university from Canberra lawyer and ANU Alumnus Craig Edwards.