THE only Victorian TAFE to offer sign language diplomas will stop teaching the course because of state government funding cuts.

Kangan Institute told students this week its Australian Sign Language (Auslan) course was ''unviable'' and would close by the end of the year. In a statement the TAFE said it would cease enrolling new students.

Brenda McKinty and fellow language students at Kangan Institute are signing ''bad'' at the prospect of their course being cut. Credit:Pat Scala

''Kangan Institute is very proud of the role its Auslan staff and programs have played over many years in serving the needs of the deaf community and understands the distress caused by what appears to be unplanned outcomes resulting from measures in the state budget,'' the statement said.

Students who want to work as an interpreter must obtain a diploma in Auslan before transferring to a diploma of interpreting at another provider.