Hull College Group has announced it is pulling out of a planned takeover of the University of Hull's Filey Road.
A statement just released states: "Since November 2014, the University of Hull and Hull College Group have been engaged in joint discussion and planning as part of a strategic partnership, working to develop a new higher education offer in Scarborough.
"Since the launch of the partnership in March 2015, the government has signalled rapid and significant change in the higher and further education sectors, leading the partners to review the sustainability of the proposed model.
"The University of Hull and Hull College Group have now decided not to progress with their strategic partnership in Scarborough.
"The University of Hull is now reviewing the options for the future of its Scarborough Campus in Filey Road.
"Current students of the University of Hull will continue with their studies, at the campus, as normal until the July 2017 graduation."
New signs went up just last year, rebranding the site under its new name of University Campus Scarborough.