Academics and students at the University of Newcastle have written to the Vice-Chancellor urging her to scrap a maintenance contract with detention centre operator, Transfield.

The corporation, which runs the centres on behalf of the Australian Government on Nauru and Manus Island, recently signed an 88 million dollar contract with the university.

President of the Tertiary Education Union and senior lecturer, Tom Griffiths says given the concerns over alleged human rights abuses at the centres, it is outrageous such a deal has been made.

He said Vice-Chancellor Caroline McMillen needs to look at lawfully withdrawing from the contract.

"The university is very well known for its advocacy on the question of equity, providing maximum help for the most vulnerable," he said.

"Now if you take that commitment seriously, then that whole industry of the detention centre business, we believe is at direct odds with the set of values and commitments that the university puts forward.

"It is important that those in leadership roles acknowledge the error of this decision and take steps to put it right by ending the university's association with this or any other company involved in the detention centre industry."

Dr Griffiths is also questioning whether the university considered ethical questions before awarding the contract to Transfield.

He said the implications of partnering with Transfield should have been obvious.

"We specifically don't invest in alcohol, tobacco or gambling companies.

"We think the same sort of conditions ought to apply to companies involved in mandatory detention."