Uni fee deregulation plan to be modified

The federal government will soften the blow of an unpopular 2014 budget proposal to allow universities to set their own fees.

The federal government is set to modify a plan to deregulate university fees in next week's budget. (AAP)

The federal government is set to modify a plan to deregulate university fees in next week's budget.

While the unpopular proposal which Labor has long argued would lead to $100,000 degrees will be kept, the government could soften the blow by limiting the size of fees, The Australian Financial Review reports.

That could stop price gouging while diluting the impact of Labor's campaign.