Keele had teamed up with student accommodation provider University Partnerships Programme to fund and run new purpose-built buildings.

But despite working on the scheme for three years, the two are understood to have failed to reach final agreement on financing the plans.

Contractor Vinci had been lined up to deliver construction, which has now been put on hold, despite some preparatory work being carried out on site.

A Keele spokesman told Stoke on Trent’s Sentinel newspaper: “The university and UPP had been working together to explore opportunities to provide new residential accommodation.

“The parties have been unable to reach an agreement on a viable scheme and, on that basis, have ended their working relationship.

“The university is continuing to explore further options for providing more high-quality accommodation on the campus.”

Keele University was planning to increase its student numbers from 10,000 to 13,000 by 2020, but student numbers are running below target.

Plan for typical new student block cluster at Barnes Hall

New accommodation was to be built in three campus areas at Barnes, Horwood and Lindsay Halls, delivered in phases of both town houses and larger student blocks to keep disruption to a minimum.