The University of Otago has confirmed plans to lift a cap on international students to 15% of all students.
At present, the number is just below the university's self-imposed limit of 11.8% and forecast to rise further.
Tertiary Education Minister Steven Joyce has been putting pressure on the South Island university to lift the cap as high as 20% to help meet the Government's goal of doubling the economic value of international education by 2025.
A 15% cap gives Otago scope to take another 500 foreign students.
However, the university council is keeping a requirement that no more than a quarter of its international students come from any one country.
