"The campus is treasured by many and these links are deep and strong. However, it is a decision that we need to take in response to present challenges and it is the right thing to do for Swinburne."

A university spokeswoman said courses would be transferred from Prahran to the Hawthorn campus. However, she would not confirm whether the campus would be closed permanently.

"The plan is to integrate Prahran back to the Hawthorn campus but there aren’t any immediate plans for that. It won’t happen next year," she said.

The university will stop offering courses at Lilydale from July next year. Professor Kristjanson said students currently enrolled in courses there would be able to find places at the university’s other campuses or through its online education programs. Staff at the campus will also be advised on their future at the university.

Professor Kristjanson said the university would also move its faculty of design from Prahran to the Hawthorn campus.