The University of Newcastle has welcomed a potential increase in international students that would flow from the introduction of caps at sandstone institutions.
The federal government is expected to announce measures to reduce international student numbers at capital city-based universities next week.
More than 30 per cent of the international student market is presently shared between the University of Sydney, the University of Melbourne and Monash.
As part of a draft bill announced in May, Education Minister Jason Clare would limit the enrolment of overseas students by provider, course or location.
The move is designed, in part, to "alleviate current pressures on accommodation, transport and other infrastructure" and to "advance the viability of regional providers".
While several sandstone universities have protested about the loss of revenue that result from the caps, regional universities, such as Newcastle, are likely to benefit.
International student enrolments represent about 24 per cent of total enrolments at Newcastle, compared to 35 per cent at Sydney and 37 per cent at the University of NSW.
University of Newcastle Vice Chancellor Alex Zelinsky said the university had made representations to the government as part of the Australian Technology Network of Universities cluster.
"Currently, over 90 per cent of international students are in our capital cities, with particular concentration in Sydney and Melbourne," he said.
"A more balanced distribution of international students may help relieve some of the pressure in urban centres, while enriching regional communities with the diverse skills and perspectives that international students bring."
"The University of Newcastle has engaged in conversations with local employers and industry leaders, who recognise the immense value that international students bring to regional cities and towns, both in our classrooms and workplaces."
Hunter Business chief executive Bob Hawes said the organisation had previously worked with the university to integrate international students into local work opportunities and would welcome the opportunity to do so again.
"It's a mutually beneficial relationship as the students look to learn more about the region and businesses benefit from the employment pool they provide particularly in casual work," he said.
"It's a real bonus that universities will have an opportunity to capture part of a market that has heavy gravity to the capital cities and sandstone universities. I'm sure the region will embrace it with both hands."
The new legislation will reward universities that diversify away from Chinese students, which make up the majority of international enrolments at Australian universities.
Universities must adhere to strict enrolment caps in 2025, but may then enrol additional non-Chinese students.
More students can be enrolled if universities build additional student accommodation.
The University of Newcastle is in the planning process for a nine-storey building, to be located on the corner of Worth Place and Civic Lane, that will house more than 450 students.
The project is part of the second stage of the university's plans for the Honeysuckle precinct after it bought the two-hectare site from the state government in 2018.
The University of Newcastle will join Nihon University on Thursday to celebrate the official opening of the Japanese-based university's first international campus at the former Newcastle Court House in Church Street.
