Flinders University has withdrawn $60 million in funding for a medical research facility in Adelaide due to a lack of co-investment from the Federal Government.

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The facility was to be used to specialise in proton therapy as a form of advanced cancer treatment.

It would have been built on North Terrace in Adelaide's CBD near the South Australian Health and Medical Research Institute (SAHMRI).

A Flinders University spokesperson said the capital investment was "no longer feasible" without a co-investment from the Federal Government, which had not been secured.

"However, we are keen to pursue alternative options that might help this vision become a reality," she said.

Proton therapy is a type of external-beam radiation therapy that uses protons, rather than x-rays, to treat cancer.

It can result in a more localised radiation dose limited to a cancerous tumour rather than affecting surrounding healthy tissue as well.

The treatment is unavailable in Australia and the Federal Government pays for about 10 Australians per year to travel overseas for at a cost of about $200,000 per patient.

"Proton Therapy is a valuable weapon in the arsenal against cancer, but its absence in Australia means people who could benefit from this technology must travel overseas for treatment," the Flinders spokesperson said.

Federal funding still 'under consideration'

Federal MP Christopher Pyne said he was "disappointed" that Flinders University acted without talking to him.

"Federal funding for a proton therapy machine in Australia is still under consideration," he said.

"It's a great project and I'm very enthusiastic about trying to bring it about with the SA Government."

SA Premier Jay Weatherill said he would have preferred that Flinders remained onboard.

"They withdraw their funding some time ago ... the Commonwealth haven't yet made a decision," he said.

He said the State Government had been engaged in talks to find new partners for the project.

This included tertiary institutions, medical equipment suppliers, and "also other people who may have an interest in being in our biomedical precinct".

"We had very detailed discussions with the new SAHMRI institute and other partners," Mr Weatherill said.

"The Commonwealth, I think, are attracted to the idea. We've just got to land a negotiation with them."

Mr Weatherill said the State Government's contribution of $44 million "remains on the table".

"Yesterday I met with Christopher Pyne, who I know is personally interested in this project, to ask if he can fix the funding impasse," he said.

"Without Commonwealth co-investment the proposed centre is unlikely to proceed."

Mr Weatherill said the project would deliver benefits for SA's economy as well as cancer sufferers across the nation if it proceeds.