Scarborough Council will continue its plan to open a university in the town despite being snubbed on Friday for Hull’s Filey Road Campus.
The authority submitted a joint bid alongside Coventry University when the University Hull announced it was ceasing to offer honours degrees in the town.
On Friday it was announced that Hull College Group had been given preferred bidder status, delivering a body blow to the council’s plans to reshape education in the town.
However, it appears this will not be the end of its plans.
Cllr Tom Fox, leader of the council, said: “We are hugely disappointed by University of Hull’s decision.
“We think the wishes of the community have been ignored and the decision does not accord with the town’s ambition for a true University of Scarborough.
“Having previously engaged heavily with the borough’s business community and received their unequivocal support for our bid, our position is that we will work with Coventry University, an award winning institution, to deliver a new University of Scarborough on another site in the town.”