The University of Sydney will dramatically reduce its number of undergraduate degrees, will rethink its research investments and face up to a cultural bias of "old, white males" in positions of power in a bid to unseat Melbourne as the best university in the country.

The vice-chancellor, Michael Spence, has told staff that the next six months will be spent radically overhauling the structure and culture of Australia's oldest university. It will be a contentious time, he concedes, but critical for the future of the institution.

Sydney University plans to work on regaining its former preeminence and getting back to the top of the league tables. Credit:Fiona Morris

"On most of the league tables, Melbourne still beats us and that is not historically right," Dr Spence said.

"We are not only Australia's first university but for most of our history, we were indisputably Australia's best university, and arguably one of the best universities in the region. We want to to regain that preeminence, and our next strategy is really about performance, improving the work of the institution."