London

In a move that has sent shock waves through both colleges, London's two largest research institutions have revealed that they are considering plans to merge. University College London (UCL) and Imperial College say that they are discussing the move in a bid to compete more effectively with top US institutions.

If the merger happens, it will create a university with 28,000 students and almost £400 million (US$620 million) in yearly research funds — far more than Oxford or Cambridge, which will each spend about £200 million on research this year. A decision to merge could be made as early as this December, with the new institution taking its first steps by this time next year.

The possible merger is a “once-in-a-lifetime opportunity”, says Derek Roberts, provost of UCL. “We're talking about creating the world's leading university, full stop. We see this as an institution not for the next two or three years but for two or three centuries.”

Richard Sykes, rector of Imperial College, says that both colleges are embarking on a consultation exercise “to ensure that if the merger does go ahead we carry most people with us”. If it does happen, the new body is likely to leave the loosely federated University of London.

Roberts and Sykes both have industrial backgrounds, and it isn't clear if academics at the universities will share their enthusiasm for a larger institution that would combine Imperial's strengths in engineering and the physical sciences with UCL's broader tradition in science, medicine and the humanities.

“Everyone's a bit shell-shocked round here and its causing a lot of concern,” says one physicist at UCL, who did not want to be identified. “To get any benefit from a merger they'll have to re-site a lot of people and while that's sorted out, there will be enormous disruption.”

A joint working group will report to the respective universities' ruling bodies at the end of the year — although a formal merger would require an act of parliament. One issue that will not complicate any potential combination is leadership. Sykes would head it, as Roberts is only in charge of UCL temporarily (see Nature 418, 576; 2002).

The British government is preparing a discussion paper on higher education that is widely expected to intensify competition for cash and students between the country's 114 universities.