Australia's biggest university, a national university based in regional Australia spread across at least two states, is the likely outcome of a regional universities merger plan announced on Friday.
The proposed merger of Charles Sturt and Southern Cross regional universities may signal further amalgamations of smaller universities.
Charles Sturt, with headquarters in Wagga, NSW, and Southern Cross, with headquarters in Lismore, northern NSW, will start with a feasibility study for the creation of a national university in regional Australia.
At least one more university from another state will probably be invited to join as a foundation partner in the national venture.
Such a bold venture is likely to win the support of Deputy Prime Minister, Julia Gillard.
She has asked for such innovation in solving the current university funding crisis, especially, in order to lift the availability of quality tertiary education in regional Australia.
Among priorities for the merger would be the expansion of distance education in regional areas through an increased investment in digital technology.
The announcement comes as Universities are anxiously awaiting the Federal Government's publication of the Bradley review of higher education.
It's likely to call for a big overhaul of the university sector, amid speculation that some of the country's public universities cannot be sustained in their current form.
In a joint statement on Friday, both vice-chancellors say the proposal will "bring together two universities, leaders in professional and distance education and allow them to build on their innovation and success.
"The universities envisage the creation of a new national institution crossing state borders, with a specific mission to extend the boundaries of the educational experience into a genuinely digital domain."
It would also enhance the ability of regional communities to meet labour force needs, such as in the health sector.
New England University, also in Northern NSW, is conspicuous by its absence, having severed a previous relationship with Southern Cross in 1994.