The London School of Economics, one of the world's leading universities in social sciences, has been examining the option of going private as fears grow that a rise in tuition fees will not provide sufficient funding for English universities to compete globally.
Universities are alarmed by cuts in government funding and indications that they will not be allowed to charge unlimited fees to make up the shortfall and allow for growth.
A private university would be able to charge far higher fees than the current level of £3,290 a year.
Papers submitted to the LSE's governing body, the LSE council, for a recent "away day" included a finance paper looking at the implications of declining government funding, which was first reported on by the LSE's student newspaper, the Beaver.
The paper considered the model of Buckingham University, one of two private universities in England. Buckingham charges around £17,000 for a two-year degree.
Privatisation would also mean that the university would not have to follow government guidelines on widening access to poorer students.
More from Jeevan Vasagar, writing in The Guardian
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