Sources at the contractor confirmed to the Enquirer that the project has been abandoned due to planning problems.
The University is hoping to revive the futuristic scheme for its new hall of residence – dubbed the Blade – with another developer
The 300ft tower was originally due to be finished next year in time for the start of the September term but has been dogged by delays.
The university told local paper The News it was looking for a new developer but was not able to say how long the delay would last.
University Vice-Chancellor John Craven said: “Ongoing discussions mean the university is still unable to provide any specific additional information.
“It remains committed to the scheme both strategically and financially and hopes to be in a position to progress it shortly.”
The building was granted planning permission last year amid controversy over its height and modern design as objections were raised by local residents and English Heritage.