The peak body representing Australian universities has urged the Turnbull government not to pursue a "dramatic overhaul" of the nation's higher education system as it prepares to legislate a new round of university reforms.

Universities Australia, in its submission for the May budget, also urges the government to abandon its proposed $3.2 billion in cuts to university funding because there is "no defensible case" for such a reduction.

Universities Australia, led by chief executive Belinda Robinson, is urging the government to abandon its proposed higher education funding cuts. Credit:Daniel Munoz

The government last year released an options paper for higher education reform including proposals for a new tier of "flagship courses" with deregulated fees, uncapping postgraduate student places and recouping HECS debts from deceased estates.

A panel of experts is providing advice on reform and the government plans to introduce a new package of legislation by the middle of the year.