Since 1996, CIT has hosted the ACT Adult Migration English program which provides 510 hours of free English language tuition to migrants on skilled, family or humanitarian visa.

But after a competitive tender process, the Department of Industry has decided to award the contract to another provider in Canberra.

CIT acting chief executive Shane Kay said the decision was "obviously a disappointing development" but insisted the school would continue to provide support and language classes for migrants.

"CIT, as well as other training providers, submitted a tender to continue the program for the next three years, but in this instance CIT was not successful," he said.

A Department of Industry spokeswoman said CIT declined an extension of their 2011-14 lease "citing difficulties with their original tender price" and the contract subsequently went to open tender.

Mr Kay said the institute planned to redeploy close to 15 full-time teaching and administrative staff to other roles within the organisation.

The migrant language program employed close to 20 casual CIT workers and Mr Kay said he hoped they could be offered alternative work with the institute.

The Department of Industry spokeswoman said the new language provider would be announced by Austender in coming weeks and courses would not be impacted in 2015.

Mr Kay said close to 60 per cent of CIT's funding came through government grants with the remaining 40 per cent won through the commercial sector.

"It's disappointing we didn't win the tender but we will keep investigating opportunities."