A merger between the University of Bradford and Bradford College has collapsed.

The two institutions today called off the deal, but insist they will continue to work closely together as partners.

The breakdown follows 20 months of detailed negotiations between the two establishments, which occupy adjoining sites in Great Horton Road, Bradford.

The aim was to set up a giant 'comprehensive university', unique in offering a full range of study, from basic skills to international research.

It was meant to halt the slide in student applications, largely blamed on the riots of 2001, and could have benefited local people by offering better opportunities to progress through higher education. Leaders of the scheme hoped to attract millions of pounds in external investment.

But that vision is now in tatters after University and College chiefs were unable to agree the details of the merger.

Documents seen by the Telegraph & Argus show a gulf between the partners opened up in May.

After a meeting on May 8 members of the College Corporation - its governing body - wrote to the University about their fears that the deal was "a simple take over" rather than a true merger.

Their report called for "urgent discussions... to signal that the proposed institution was far more than re-badged University of Bradford."

They wanted both the University and the College to be dissolved and a new chartered university set up.

They were also insistent that there should be open competition for the post of vice-chancellor of the new institution.

In reply, Professor Chris Taylor, vice-chancellor of the University, pleaded with them not to "unilaterally" pull out of the talks and said he thought the problems could be overcome.

Today, both partners released a joint statement that was upbeat in tone, stating that the long and detailed negotiations had been "enormously useful work".

Prof Taylor and College principal Alan Hodgson said: "We will continue to collaborate closely and build upon the strength of our past and present relationship, and seek further areas of joint academic and operational working.

"This is likely to include collaboration on developments of benefit to both institutions, including the development of an educational village."

But a letter from Prof Taylor to the College on May 20, leaked to the T&A, betrays real fears at the failure to agree a deal.

"We are particularly concerned for the city and district of Bradford," he wrote. "There has been an enormously positive response to the prospective contribution the College and University might make to economic and social regeneration in Bradford through a merger. Were the discussion to dissipate in an inappropriate manner, possibly the city and district would be the most damaged party."

The merger plan was unpopular with students and their teachers at the University of Bradford. In separate polls, students and members of the Association of University Teachers (AUT) voted against it.

It also ran into controversy when it was revealed that bosses had spent £20,000 on consultants to devise a new name - producing three options, Bradford University, University of Bradford and The University of Bradford.