A 500-space parking lot at Glebe Farm was proposed as part of the university's Inveresk master plan after it was released in June, which would help ease fears over projected traffic congestion at Inveresk.

At the time, vice chancellor Rufus Black said the car park would be serviced by an existing pedestrian bridge and would encourage students and staff to park and walk into the campus.

However, on Saturday, UTAS pro vice chancellor Dom Geraghty revealed negotiations between the owners of Glebe Farm and UTAS had broken down and the owners had decided to walk away.

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"The University of Tasmania will no longer develop parking on the Glebe Farm as part of the Northern Transformation Program," Professor Geraghty said.

"Following lengthy discussions, we could not come to commercial terms with the owner of the property and they decided not to proceed with the sale."

Parking and traffic management has been a hot button issue the university has had to deal with during the development of the master plan and is one that had consistently cropped up as part of community feedback.

However, Professor Geraghty said the Glebe Farm parking option was only one of several solutions UTAS was working through in relation to the $360 million campus.

"Glebe Farm was one element of a plan that includes a number of significant existing and planned car parks throughout the Inveresk precinct," he said.

"In consultation with the City of Launceston, we are actively pursuing multiple alternative parking solutions in and around the Inveresk Precinct."

Professor Geraghty said going back to the drawing board on parking would not impact on the campus development or timeline of construction as the Glebe Farm car park was not planned to be developed until later stages of the campus.

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The campus is expected to emerge over three main stages, along with concurrent work. The first stage will be the library and student services building, along with a pedestrian bridge to link the Willis Street site with the main campus at Inveresk.

Professor Geraghty said UTAS wanted to wish the owners of Glebe Farm well and thank them for their support of the UTAS Northern Transformation plan.

"We look forward to providing further updates to the community as the project progresses."

A development application for stage one of the campus has already been lodged with the council.

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