HUDDERSFIELD University has severed its links with Dewsbury College for three of its design degree courses.
The University says the changes have been made because of student preference and will happen at the start of the next academic year.
Around 30 students are affected.
Dewsbury College says it is disappointed by the decision and has denied it has any financial difficulties, despite rumours of a £800,000 cash shortfall at the college.
The Examiner also understands that the college's financial director has been on sick leave.
In a joint statement from the University and the College a spokesman said: "In response to student wishes, students recruited by the University of Huddersfield for three of its design degree courses will be taught in Huddersfield in future rather than at Dewsbury College's Batley School of Art and Design.
"The first year of three-year BA courses in Creative Imaging (Graphic Design) and Interior Design are currently taught at Batley.
"Students then transfer to Huddersfield for their second and third years.
"Fashion Design students currently study two years at Batley before transferring to Huddersfield for their final year.
"Three other degree courses taught solely at the Batley School of Art and Design and validated by the University of Huddersfield are unaffected. BA degrees in Fine Art for Design, Moving Image Design and Contemporary Photographic Arts will continue in Batley according to current arrangements.
"Dewsbury College runs a range of Higher Education programmes and these remain unaffected by the change."
Professor Tim Boatswain, the University's Pro-Vice Chancellor for External Relations said: "Our students have made it clear that they would prefer to study in Huddersfield for the entire duration of their courses.
"As the University always has students' interests uppermost, we feel duty bound to accede to our their request."
Mrs Wendy Pawson, principal of Dewsbury College Further Education Corporation denied any financial irregularities at the college.
She said there was not and never had been any police investigations into finances at the college.
And she said the health of a member of staff was a private matter.
But in the minutes of the Board of Governors of the College held last November, the principal said she would be meeting a representative of the Learning and Skills Council to consider the possibility of a more even spread of funding to Dewsbury College to address the projected cash shortfall in February-March this year.
And the Board resolved to request a "rigorous and thorough review of College expenditure and to give further consideration to the financial position of the College at the next board meeting."
In an additional statement Mrs Pawson said: "We are disappointed that the students will be transferring to the Huddersfield campus.
"Dewsbury College is committed to offering a rich experience to the hundreds of higher education students studying at our Dewsbury and Batley campuses.
"Dewsbury College had a poor financial out-turn in 2003-04, which was a one-off occurrence and does not affect the `going concern' basis of the college. The financial statements for 2003-04 have not yet been approved by the Governing Body and are therefore confidential until that time, when they become public documents."