The University of Greenwich will finally close its Woolwich campus after 111 years from June next year.

But before then the town centre campus, where the university began as Woolwich Polytechnic in 1890, will have its schools of humanities and business switched to the university's Maritime Greenwich campus by September.

Its school of chemical and life sciences will move to the Medway campus in Kent after June next year.

The decision to close the Woolwich campus, where 5,500 students and staff are currently based, was made at a meeting of the university's governors last week.

A Greenwich University spokesman said: “We need to reduce expenditure and the site in Woolwich is expensive to run.”

The governors also decided by 2003 the university will only be based at its three campuses at Avery Hill, in New Eltham, Maritime Greenwich, in Greenwich, and Medway, in Kent.

But alongside the closure, the university has announced a five-point education plan in Greenwich Borough possibly leading to a new centre in Woolwich for post-16 and 18 learning. It includes:

- Expanding the Avery Hill Campus;

- Providing more places for business, computing and maths courses;

- Looking into the possibility of building a new educational centre in Woolwich;

- Co-operating further with Greenwich Community College;

- Creating an outreach division to provide higher education where campuses are not close by.

Greenwich Council leader Councillor Chris Roberts said: “We are concerned to hear the university will be moving its departments out of town. But plans for a new educational centre in Woolwich could be really exciting. Education and regeneration are our top priorities and a new development to help people move through further and higher education would be a terrific boost to both.”

National Association of Teachers for Further Education (NATFE) spokesman Jenny Golden said: “Our members are against the closure of the Woolwich campus.

“It is there for the needs of the local people. We question whether they would have the means to travel further for their education.

“We are also concerned about the effect on the economy, as lots of traders benefit from the students and staff in the town.

“There are no guarantees anything will come out of the new initiative to build an educational centre.”