Representatives from the Government of South Australia, the University of Adelaide and the University of South Australia have signed an historic Heads of Agreement to support the creation of a new university.

Under the agreement, the two universities would combine to create one new entity, to be called Adelaide University.

The university councils have committed to working with the government to support the creation of the new university, which would have the largest cohort of domestic students of any university in Australia when it opens in 2026.

By 2034, the new university is forecast to educate more than 70,000 students, which is about 13,000 more than both universities combined today, create an additional 1200 jobs and contribute an estimated additional $500 million per year to the South Australian economy.

According to University of Adelaide Vice-Chancellor Professor Peter Høj and University of South Australia Vice Chancellor Professor David Lloyd, establishing a new university was a "unique opportunity to accelerate ambitions for higher education in this state and nation".

"We believe the new institution will, in the medium and longer term, be of higher national and international standing than anything we could achieve individually," the chancellors said in a joint statement.

"It will be better for our students, our staff and our community.

"We envision it to be a place for outstanding educators, researchers and innovators that will consistently rank in the top one per cent of universities worldwide."

The universities’ feasibility assessment also projected that by 2034, the new university would attract 6000 additional international students, assist an additional 800 low socio-economic students pursue higher education and generate an additional $100 million in research revenue every year.

To support the new university's establishment, the Government of South Australia will invest:

• $300 million for the establishment of two perpetual funds, which will be enshrined in legislation:
  • A new $200 million research fund to support Adelaide University’s research initiatives.
  • A new $100 million student support fund to support the enrolment of students of low socio-economic groups.

• $30 million over three years for a range of initiatives to attract international students to Adelaide University.
• $114.5 million for the purchase of university land, including the Magill Campus ($64.5 million) - which UniSA has long planned to sell - and the purchase of occupation rights for part of UniSA’s Mawson Lakes campus which is surplus to requirements ($50 million).

Both universities have committed there will be no compulsory redundancies or retrenchment of staff in advance of the new university's anticipated opening in January 2026 and for 18 months thereafter.

The State Government will now move toward introducing The Adelaide University Act 2023 to Parliament to establish the new university.