Professor Young confirmed that the university was contemplating changes after a recent speech by Nobel laureate Brian Schmidt, which argued that the university should cut undergraduate numbers to ''about 8000''.

Professor Schmidt's Order of Australia Association speech on Thursday proposed a reduction in tenured jobs and the introduction of interviews for potential students.

Professor Young said the proposed changes had been discussed for some time and were on the table.

''There are obviously financial implications,'' he said. ''I don't rule it out, I don't rule it in.''

However, Professor Young said no firm decisions on the proposed changes would be made for a ''long time yet''.

''You're looking at a debate that will go for six to eight months in the new year,'' he said. ''It's a debate that the nation needs to have.''

Professor Young said the wider community would be invited to engage in the debate as the university got its ''internal act together'' and continued its funding discussions with the federal government.

Professor Schmidt's speech, titled ''The future of ANU and its role in Canberra'', warned of a ''potential storm on the horizon'' amid the university's sliding status.

''Since 2002, ANU has gone backward in all international rankings,'' he said.

''We are no longer … Australia's leading university.''

Among the changes proposed in the speech, Professor Schmidt called for the introduction of classes offering students ''life skills''.

''People will get a good understanding in a quick short form of economics, policy and business,'' he said.

The Australian National University's Students' Association also weighed in on the proposals, with vice-president Tas Vaughan saying there was no need to interview undergraduate students or cut the number of positions offered.

''I'd say it's probably not necessary,'' he said. ''Students work hard in high school to achieve those ATAR scores.''