THE University of Nottingham has set up a deal with the University of Birmingham which could create jobs and open up opportunities in South America.
The universities have announced a "collaborative framework" – the first of its kind between higher education institutions in the country.
It will mean they work together in six areas including academic appointments, research initiatives, international opportunities, business engagement, and management and administration.
But Professor David Greenaway, vice-chancellor of The University of Nottingham, said the move does not pave the way for a merger.
He added they join forces in areas where it is "mutually beneficial to do so", but will maintain their "distinct identities and strengths as large, comprehensive, research-intensive institutions".
"A merger is not on the cards," Prof Greenaway said. "We are both very big institutions, and neither of us is in financial distress.
"The collaboration of the biggest institutions in the East and West Midlands is a pretty powerful statement of intent, and I'm excited about the additional competitive edge this may give us.
"This is not an agreement or alliance targeted at gouging out jobs. If anything, if we get it right it will create jobs."
The universities are planning to send a team of delegates to Brazil in May to look into expanding their presence into South America.
Prof Greenaway said: "It is vital that our international standing is flourishing for the university and the city.
"One area neither of the universities has done a huge amount with yet is Latin America.
"We will be sending a joint delegation out to explore ways in which our two cities and universities could benefit from closer relationships with that part of the world.
"While we have overseas campuses in China and Malaysia, Birmingham has a bigger footprint in North America, so the new framework for collaboration opens up new opportunities for both institutions."
The partnership will also involve co-operation on teaching and learning, particularly at the postgraduate level, including the possibility of jointly awarded degrees.
The University of Nottingham said the new partnership has been signed at a time when higher education in the UK faces its most challenging climate for a generation.
Professor David Eastwood, vice chancellor of Birmingham University said: "The partnership is aimed at promoting and facilitating collaboration.
"UK higher education faces increasing challenges in the coming years.
"This collaboration will enable both universities to explore opportunities to share best practice and to diversify income streams."
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