The University of Otago is set to lift its cap on international students after pressure from the Tertiary Education Minister.
The Dunedin tertiary institution has been rebuilding its foreign-fee paying intake since it slumped in 2009.
International students now account for just less than the university's self-imposed limit of 12% of its student body, at 11.8%.
The minister, Steven Joyce, says the cap is too low and should be lifted to at least 16%, or even 20%, if New Zealand is to meet the goal of doubling the economic value of international education to $5 billion by 2025.
Otago's Pro-Vice Chancellor (International) Sarah Todd says the university has heard the Government's call and a recommendation is going to the governing council to lift the cap to 15%.
However, Professor Todd says no international student has ever been turned away because of the cap and the university wants to make sure the student mix is right for Dunedin.