A spokesperson for the University of Papua New Guinea says the institution is already in the red and if promised government funding doesn't arrive it will not re-open next month.
The UPNG was the site of much of the student unrest earlier this year but with financial inducements from the government agreed to run a make-up 2016 semester from January next year.
But the funding of $US3.6 million, as well as delays in the delivery of its operational funding, prompted the Chancellor Nicholas Mann earlier this week to say the UPNG would not be able to re-open.
UPNG communication manager, James Robins, said the university was in the red.
"We can't pay salaries if we haven't got our recurrent allocation from the annual budget and also if we aren't able to utilise some of those promised funds to cover all of the extra utilities and things, to get us back a little away from the red figures that we are in now," said Mr Robins.
University of Papua New Guinea students gather to discuss their demand for the prime minister's resignation in May 2016 Photo: UPNG4PNG