A PROPOSAL to consider the University of Tasmania's $20 million student housing project at Inveresk was withdrawn from Launceston City Council's meeting yesterday.
Council general manager Robert Dobrzynski withdrew the item after meeting university management on Friday.
University vice-chancellor Peter Rathjen will now meet with aldermen to explain the proposal.
The university had been seeking aldermen's in-principle support for the project yesterday so that design and construction tenders for the 120-unit facility could go out.
The university, which has set a tight planning approval timeline for the council, said it needed the project to be ticked off by January to meet federal funding deadlines.
It has also set out a number of conditions that the council must meet if the university is to build at Inveresk.
The conditions include the right to be consulted on future planing decisions at Inveresk and taking over council buildings, which it currently uses, for a nominal fee.
Mr Dobrzynski said he would resubmit the university's proposal at the next council meeting.