Malcolm Turnbull is sticking by his government's plan to cut almost $3 billion from universities amid speculation it will dodge parliament in a bid to keep the budget bottom line intact.
Labor has accused the prime minister of having warped priorities as it considers backdoor cuts to universities in next week's mid-year budget update.
The government has failed to convince parliament to back university cuts outlined in the May budget worth $2.8 billion.
It is now reportedly eyeing more than $2 billion in savings it can make without needing the Senate's approval, including ending programs that help disadvantaged students and support research.
It may also freeze overall student funding at 2017 dollar levels.
Asked about the attempt to bypass parliament, Mr Turnbull said people would have to wait for Monday to see details.
"The government will not be reducing the overall level of funding support for higher education from what was provided in the budget," he told reporters in Sydney on Thursday.
Labor education spokeswoman Tanya Plibersek said the move would be outrageous.
"The reason the Senate blocked the previous cuts was because it was going to make university education more expensive for students, and it was going to deliver a poorer quality education," she told reporters.
Opposition finance spokesman Jim Chalmers said it showed the government's "warped priorities" that it persisted with its $65 billion company tax cut at the expense of other budget areas.
Universities Australia says education cuts would hamper efforts to return the budget to surplus.
"A funding freeze would effectively slash the number of people who have the chance of a university education, and cuts to programs that support disadvantaged students will make it harder for Australians from poor backgrounds just to get their foot in the door," chief executive Belinda Robinson said.
"That won't just be a blow for students and universities - it would be a blow to the government's budget repair ambitions and to the economy which now needs more, not fewer, skilled workers."
The mid-year budget update will be released on Monday.
